Alliance Entertainment to Buy Santa Ana Distributor Airlie

Airlie Inc., an employee-owned distributor of music cassette tapes and compact discs, signed a $35.5-million deal to be taken over by a New York music distributor, the company announced Thursday.

Purchasing Airlie, which does business as Abbey Road Distributors, makes it possible for New York’s Alliance Entertainment Corp. to expand into the West Coast, said Airlie Chief Executive Bruce Ogilvie.

“Alliance has a lot of labels with exclusive distribution in the East Coast,” Ogilvie said. “They can now expand here.”

In turn, Airlie’s 160 employees--130 of whom are in Orange County--will receive a cut in the deal, Ogilvie said. About 10% of the purchase price would be divvied up among employees, who each own stock in the company. Employees would have a choice of receiving stock or cash. “We’ll give the freedom to do what they want.”

No layoffs are anticipated with the deal, which is expected to close Jan. 31.

If the deal is finalized, Alliance would pay Airlie $20.5 million in cash, take out a $5-million promissory note and offer $10 million in stock. Airlie also has offices in Los Angeles, Atlanta and Philadelphia.