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Rita's Water Ice Changes Hands

by: iradiotom - Philadelphia, PA
started: 12/02/11 7:40 am | updated: 12/02/11 7:40 am

Rita's Water Ice has been sold, but don't worry about losing your gelati. And there's only 3 months until water ice season starts.

From the Philadelphia Business Journal:

One of Philadelphia's iconic brands changed hands Thursday â€” from one private equity firm to another.

Rita's Water Ice Franchise Co. was acquired by Falconhead Capital LLC, a New York-based private equity firm.

The water ice chain, which has local headquarters in Trevose, Pa., had been owned by another investor group, led by Jim Rudolph, who had been chairman and CEO. Going forward, Rudolph will retain 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 under way for a permanent CEO.

Financial terms of the transaction were not disclosed.

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

In May 2005, it was sold to Pittsburgh-based McKnight Capital Partners, where Rudolph is a principal.

Today, the brand has 550 franchise locations in 18 states.

Rita's has become a harbinger of warm weather, giving away free water ice on the first day of spring.

The new owners indicated it has more growth potential.

"We are delighted to acquire Rita's, one of the largest frozen treat concepts in the country with considerable growth potential," said David S. Moross, chairman and CEO at Falconhead.

Falconhead's other holdings include Competitor Group Inc., which puts on the Rock 'n' Roll Philadelphia Half Marathon.

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