The label eventually signed a national distribution deal under its own name in 1975 with Henry Stone's T.K. Records, also migrating its Chimneyville label from Atlantic. It had a monster pop and R&B hit with the classic Southern soul ballad "Misty Blue" by Dorothy Moore a year later. It later signed Johnnie Taylor, Bobby Bland, Little Milton, Z.Z. Hill and Denise LaSalle to the label.
It became a major force in black gospel music when The Jackson Southernaires left ABC Songbird and signed with the label in 1975 with the group's second lead singer Frank Williams eventually becoming their chief Gospel Music A&R executive, a post he would hold until his death in 1993. Malaco distributes recordings on the Melendo and Blackberry labels formed by Williams' brothers Melvin, Leonard and Doug of The Williams Brothers (2).
Malaco acquired the gospel division of the legendary Savoy Records in 1985 (its jazz and R&B backlog is today known as Savoy Jazz). It remained largely dormant apart from reissues of the Rev. James Cleveland's work until recently when an attempt to relaunch the label was made with new signings. It had also recently acquired Atlanta International Records from Alan Freeman.
The Malaco Music Group, as the company is known today, is active in gospel, blues, R&B and dance music.