Punk label will exit Koch in October.

Leading punk label Epitaph will sign with a new distributor, Alternative Distribution Alliance (ADA), in October, according to sources.

The label -- which sources say generated between $18 million to $20 million in U.S. revenue last year -- has been distributed by Koch since 2001.

Sources say that Epitaph had also been in talks with distributors RED and Caroline, both of whom had previously handled the label, as its deal with Koch neared completion. It also continued talks with Koch.

Although the senior executives at the Warner Music Group, parent of ADA, have long coveted Epitaph as a potential acquisition candidate, the deal with ADA is expected to be a straight music-distribution pact. Additionally, Warner Home Video will distribute Epitaph's video releases.

Epitaph, ADA, and Koch didn't return calls for comment.