Purchases remaining 50% of company.
As expected, Univision Communications Inc. has purchased the remaining 50% of Mexico-based Disa Records and Edimonsa Publishing.
Univision purchased 50% of Disa from the Chávez family of Monterrey, Mexico, in June 2001 with the provision to purchase the remaining 50% in five years. Univision originally paid $75 million for the first 50% in 2001. But, under terms of the deal, strong earnings for 2005 pushed the balance for the remaining 50% to approximately $120 million.
The Chavez family sued Univision over the summer for alleged breach of contract relating to a non-compete clause in the takeover deal. But the two sides have since settled their differences.
Disa Records, which commands nearly 14% of the Latin music market according to Nielsen Soundscan, will continue to operate as a separate label under UMG. Edimonsa Publishing will be merged into the Univision Music Publishing companies.
Disa, founded and owned by the Chavez family, is known for its aggressive A&R and for pushing new acts and new genres. Disa is largely responsible for the explosion of duranguense music in the United States and beyond thanks to acts like Grupo Montez de Durango and K-Paz de la Sierra.
Carlos Ruiz has been appointed VP/GM of Disa Records. He previously served as finance director for Univision Music Group Mexico. Ruiz's career in the Latin music industry spans over 18 years and includes leadership positions with Warner Music Brazil, Peerless-MCM and Metro Casa Musical.
Disa Records currently represents a roster including Montez de Durango, Los Horoscopos, Patrulla 81, Los Brindis and Beto y Sus Canarios. Disa Records will continue to operate primarily from Monterrey, Mexico, with major offices in Mexico City, Los Angeles, San Antonio and Miami.