Swiss food company Nestle SA (NSRGY) is spending $500 million to take a 68% stake in trendy coffee company Blue Bottle, the Financial Times reported Thursday. 

The deal values the Oakland, CA-based company, which was founded about 15 years ago, at about $700 million. 

"My goal as CEO has been to secure a sustainable future for Blue Bottle Coffee that would enable it to flourish for many years to come," Blue Bottle Coffee CEO Bryan Meehan said in a statement. "I'm excited to work with Nestle to take a long-term approach to becoming a global leader in specialty coffee."

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