Pittsburgh Tribune-Review:
Pittsburgh-based investors have sold a controlling stake in the company that franchises Rita’s Italian Ice restaurants to Falconhead Capital LLC of New York City.
McKnight Capital Partners bought Rita’s Water Ice Franchise Co. LLC of Trevose, near Philadelphia, for an undisclosed price in May 2005. Jim Rudolph, a partner in the Downtown-based firm, became Rita’s chief executive.
Falconhead didn’t disclose on Friday what it paid for a controlling stake in the company that has increased to 550 franchises in 18 states. Rita’s has about 21 locations in Western Pennsylvania.
Rita’s began in 1984 when Bob Tumelo and his mother, Elizabeth, experimented with Italian ice recipes so he could supplement his income as a Philadelphia firefighter. Bob Tumelo’s brother, John, joined the company and the family began franchising restaurants in 1989.
The McKnight company bought Rita’s from the family. At the time, there were about 325 locations in 11 states.