News

Rita's Italian Ice sold to private equity firm

December 4, 2011

Falconhead Capital LLC , a private equity firm specializing in growing consumer-focused businesses, has acquired a controlling stake in Rita's Water Ice Franchise Company LLC, a regional frozen treat concept based in Trevose, Pa., from an investment group led by Jim Rudolph.

Rudolph has retained a minority stake and has been named vice chairman.

Thomas Christopoul, an operating partner at Falconhead, has been named chairman and interim CEO of Rita's. A search is underway for a full time CEO.

Financial terms of the transaction were not disclosed.

Rita's was founded in 1984 by Bob Tumolo, a former Philadelphia firefighter who, alongside his mother Elizabeth and brother John, made and sold Italian Ice from their small porch window.

Today, the brand includes approximately 550 franchise locations in 18 states. It was recently recognized by Zagat as the No. 2 outlet in Top Ice Cream/Custard.

"This transaction is an important vote of confidence in the Rita's concept and a positive development for our franchisees. Falconhead is an ideal owner for our business given their successful track record investing in and supporting consumer-facing businesses," Rudolph said. "Together, we look forward to continuing the tradition of 'Ice, Custard, Happiness' that has won us an extremely loyal and active fan base over the years."

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