Argosy Private Equity (Argosy), a lower middle market private equity firm, has exited its investment in Rita’s Franchise Company (Ritas), a US provider of frozen desserts founded in 1984, through a sale to New York-based MTN Capital.
The Rita’s franchise network spans approximately 600 locations across 30 US states, as well as international markets.
Argosy acquired Rita’s in December 2016 and began implementation of its Value Acceleration Methodology (VAM) at acquisition. Key initiatives included refining its expansion strategy and leveraging data to drive key decisions, such as new store and drive thru locations. Enhancing franchisee support through upgraded training and ordering tools, while boosting customer engagement through a revamped app and mobile ordering, contributed to additional growth. On the product front, R&D led to new flavours and offerings including Frozen Coffee and seasonal products.
“The numerous changes implemented during our ownership period have significantly increased franchisee profitability and improved the customer experience. We are excited to see the brand continue to thrive under its new ownership,” said Kirk Griswold, Founding Partner of Argosy Private Equity.
