Compact Video Seeks Chain of Drugstores

Compact Video, a Burbank-based video and film services company, wants to buy a much-larger drugstore chain as part of a shuffling of assets among concerns at least partly controlled by New York investor Ronald O. Perelman.

The Rhode Island-based chain, Adams Drug, was acquired by Pantry Pride in October, 1984, for $100 million. At the time, it had 446 stores in the Northeast with annual sales of more than $300 million.

Compact Video lost $4.2 million on sales of $41.4 million in the fiscal year ended April 30, 1985, mostly due to the cost of closing and consolidating operations.

Daniel J. Offen, an analyst at Herzfield & Stern in New York, said Friday that the acquisition of the drugstore chain would make Compact Video “a completely different entity.”

Seeks Other Firms

Pantry Pride acquired Revlon in November in a hostile $1.83-billion takeover and has sold off parts of the cosmetics company to reduce its debt from the transaction. Offen said, however, that he did not believe the proposed deal was related to the Revlon acquisition.

Compact Video also announced that it wants to buy two other Perelman companies. It is offering $4.9 million for New York-based VidAmerica, and it proposes swapping stock on a one-for-one basis with Los Angeles-based Four Star International if at least 80% of Four Star’s shares are tendered.

Offen said VidAmerica has an extensive video library while Four Star owns roughly 600 mostly low-budget movies and distributes television shows.

A Perelman company, MacAndrews & Forbes Holdings, controls 23% of Compact Video, 35% of Pantry Pride, 54% of Four Star and 100% of VidAmerica.

Compact Video said it expects to complete the purchase of Adams Drug within several months.