Unedited press release follows:
Alliance Entertainment Acquires EDGE Entertainment Distribution
Acquisition Strengthens Alliance’s Commitment to Independent Music Retailers
CORAL SPRINGS, FL–(March 11, 2011) – Platinum Equity and The Gores Group announced today that Alliance Entertainment has acquired EDGE Entertainment Distribution, a wholesale distributor of pre-recorded music and movie titles, related accessories and other products. EDGE primarily serves independent music retailers, public libraries and college book stores.
Financial terms of the EDGE acquisition were not disclosed.
EDGE provides one-stop access to more than 140,000 titles of compact discs, DVD and Blu-Ray movies, and other entertainment-related accessory products.
Alliance was acquired by a joint venture between affiliates of Platinum Equity and The Gores Group in 2010.
“Alliance has a long-standing commitment to serving the distribution needs of the music industry and independent retailers in particular,” said Bryan Kelln, president of portfolio operations for Platinum Equity. “Alliance understands their needs and looks forward to continuing to deliver the high level of customer service they deserve.”
“As the market for distributing media content continues to evolve, we will keep pursuing opportunities to grow and diversify Alliance’s business organically and through additional acquisitions,” added Jon Gimbel, principal, The Gores Group.
About Alliance Entertainment
Alliance Entertainment manages a physical inventory of 400,000 CD, DVD and videogame titles in its distribution center in Shepherdsville, KY. Alliance Entertainment is the largest wholesale distributor of CD, DVD and videogame titles in the United States, providing distribution, fulfillment and other services to such retailers as Barnes & Noble, Borders, Amazon.com, Target.com and BestBuy.com. The company has 2,900 unique customers and ships to 14,500 locations throughout the United States.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed over 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.
About The Gores Group LLC
The Gores Group LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm’s operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, LLC, which was founded in 1987 by Alec E. Gores, has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. The firm’s current private equity fund has committed equity capital of more than $4 billion. Headquartered in Los Angeles, The Gores Group, LLC maintains offices in Boulder, CO, and London.