Rita’s Franchise Company, which is backed by Falconhead Capital LLC, has closed a refinancing. No financial terms were disclosed. SunTrust Bank and Spring Capital III LP led the refinancing. Headquartered in Trevose, Pennsylvania, Rita’s Franchise is the franchise company of Rita’s Italian Ice, an Italian ice franchise.
NEW YORK, March 23, 2015 – Falconhead Capital, LLC, a private equity firm specializing in growing sports and consumer-focused businesses, today announced that its portfolio company Rita’s Franchise Company has completed a successful refinancing. The refinancing was led by SunTrust Bank and Spring Capital Partners III, L.P. Financial terms were not disclosed.
Rita’s Franchise Company, which Falconhead acquired in 2011, is the franchise company of the World’s largest Italian Ice concept, Rita’s Italian Ice. There are currently more than 600 Rita’s locations in the U.S. following the opening of 71 new locations across 20 different states in 2014. The company expects that 100 new locations will open in 2015.
David S. Moross, chairman and chief executive officer of Falconhead Capital, said: “We are very pleased by the progress of our investment in Rita’s, which has become one of the most compelling concepts in franchising today. Rita’s is currently in the midst of an aggressive domestic and international growth initiative that we are confident will enhance the company’s value for all of its stakeholders. This refinancing is not only a vital endorsement of the company’s success to date, but it will significantly lower cost of capital and support the company’s growth objectives. We look forward to continuing to support Jeff Moody, John Dombroski and their team at this exciting time in Rita’s 30-year history.”
About Falconhead Capital
Falconhead Capital, LLC, with $400 million of assets under management, is a private equity firm established in 1998 to provide investors with significant long-term capital appreciation by investing globally in consumer-focused businesses in the sport, leisure, lifestyle, and media categories. Falconhead’s current portfolio includes GPS Industries, Javo Beverage Company, Mom365, and Rita’s Water Ice Franchise Company. Past Falconhead investments include, among others, Escort, Competitor Group, National Powersport Auctions, Maritime Telecommunications Network, and ESPN Classic Europe. For more information, please visit www.falconheadcapital.com.
About Rita’s Franchise Company
Ranked #1 in Nation’s Restaurant News “Consumer Pick’s 2014” for Service and Value in the Frozen Treat category and 14th overall in the Limited-Service category, Rita’s Franchise Company is the largest Italian Ice concept in the world with more than 600 stores in the U.S. The company is aggressively expanding internationally with an operating location in the Philippines, and stores planned for Canada and the Middle East. Rita’s, headquartered in Trevose, Pa., was also named one of the Top 25 Franchise High Performers by the Wall Street Journal’s “Startup Journal” and ranks #81 on Entrepreneur Magazine’s “2014 Franchise 500” list. For more information about Rita’s franchise opportunities, please visit www.ownaritas.com.
About SunTrust Banks, Inc.
SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation’s largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. As of December 31, 2014, SunTrust had total assets of $190.3 billion and total deposits of $140.6 billion. SunTrust’s Internet address is suntrust.com.
About Spring Capital Partners
Spring Capital Partners was founded in 1999 to provide mezzanine capital and minority equity to growing small and medium sized businesses. It is currently investing out of Spring Capital Partners III, a $175 million private capital fund. For more information, please visit www.springcap.com.