Warner Adds Ryko

The deal costs $67 million.
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Warner Music Group

(WMG) - Get Report

acquired privately held music and entertainment company Ryko from an investment group led by JPMorgan Partners for $67.5 million.

Ryko owns a catalog of more than 1,000 titles of rock, folk, jazz, world, blues and alternative albums from artists such as Ry Cooder, Frank Zappa and Soul Asylum.

"Ryko is a perfect complement to WMG's existing businesses," said Lyor Cohen, chairman of Warner's U.S. Recorded Music division. "By applying WMG's marketing expertise, strength in the digital space and its leading position in U.S. independent distribution, we're confident that we will be able to maximize Ryko's value."

Sam Holdsworth, CEO of Ryko, who was a partner in the original JPMorgan Partners investment group, will step down following the completion of the sale.

Warner Music Group was created when

Time Warner

(TWX)

sold the music business two years ago to a group led by Edgar Bronfman Jr., Bain Capital and Thomas Lee Partners for $2.6 billion.

Shares have performed respectably since the company went public at $17 a share in May of last year. On Friday the stock was set to open at $21.80.