Caribou Coffee is offloading its roasting operations onto a sister company to focus exclusively on its retail business.

On Thursday, the Minnesota-based coffee company announced that JDE Peet’s will take over Caribou’s Brooklyn Center roastery in a $260 million deal. As part of the deal, Caribou plans to license its consumer packaged goods and foodservice operations to JDE Peet’s. That means JDE Peet’s will be responsible for roasting Caribou’s coffee at its Brooklyn Center facility and supplying it to Caribou’s retail locations.

In an email, a Caribou spokesperson said the transaction will enable the company to focus on growing its coffeehouse footprint, which currently stretches to over than 800 locations across 11 countries. The company’s franchise program, announced in 2021, is also expected to “double domestic coffeehouses in the coming years,” the spokesperson said. “Through an expanded development agreement with current franchisees, Caribou Coffee also expects similar development internationally.”

Caribou and JDE Peet’s have had a long, complicated history over the last decade. Back in 2012, Luxembourg-based conglomerate JAB Holding Co. acquired both Caribou and Peet’s Coffee & Tea Inc. – JDE Peet’s predecessor company. After JAB acquired Caribou, it shut down around 80 stores and rebranded 88 more under the Peet’s banner, though several have reopened in the U.S. since.

In 2019, JAB would go on to merge Peet’s with Jacobs Douwe Egberts – hence JDE Peet’s – and took the combined brand public in Amsterdam in 2020.

As of today, both Caribou and JDE Peet’s remain “JAB portfolio companies,” a Caribou spokesperson said via email.

Caribou’s leadership had nothing but positive things to say about the latest corporate maneuvering. The deal won’t “lead to any material coffeehouse closures or position eliminations,” according to Caribou. John Butcher, Caribou’s president and CEO, said he’s “excited” to work with JDE Peet’s to “expand the reach of our storied brand as we maintain our legacy of consistency and quality.”

“The Caribou Coffee story started in Minnesota over thirty years ago, and the Twin Cities will continue to be home,” Butcher said in a statement to TCB. “We’re thrilled to have the opportunity to bring our coffee to more guests in all channels, and JDE Peet’s has the right resources, expertise, and team to continue the growth trajectory of multiple business platforms our team has built over the last several years.”

Though Caribou’s consumer products are already available in all 50 states, Butcher said the new deal will help the coffee company get its goods into even more markets. “Given JDE Peets’s robust buying, roasting, and distribution capabilities, this is an exciting moment for Caribou Coffee – as JDE Peet’s will significantly expand the reach of our brand in these important commercial segments,” a spokesperson said.

The latest transaction isn’t a done deal yet, but it’s slated to close in the first quarter of this year. Caribou declined to share how many people it employs at its Brooklyn Center facility, but noted that senior leaders from both JDE Peet’s and Caribou will “work together to ensure a smooth transition” over the next few months.