Pantry Pride to Sell Revlon Unit to Rorer : Ethical Drug Division to Bring $690 Million

NEW YORK —  Pantry Pride’s dismantling of Revlon continued Friday with Pantry Pride agreeing to sell Revlon’s prescription drug unit to Rorer Group for $690 million in cash.

Pantry Pride previously agreed to sell two other Revlon health-care units, Norcliff Thayer and Reheis Chemical, to Beecham Group PLC of Britain for $395 million.

Pantry Pride acquired Revlon earlier this month in a hostile, $1.83-billion takeover, and Pantry Pride was expected to quickly fulfill its previous projection that it would sell most of Revlon’s health-care businesses.

In a statement, Pantry Pride President Bruce Slovin said the proposed sale of Revlon’s ethical drug unit to Rorer “represents an important step in our ongoing program for the divestiture of Revlon’s health-care assets.”

Revlon’s remaining health-care units include Barnes-Hind and Coburn, which specialize in vision care, and Technicon and National Health Laboratories, which provide diagnostic products and services.

Court Order Sought

Revlon’s other principal business is its well-known cosmetics unit, which Pantry Pride previously indicated that it wants to keep. But, before it was acquired by Pantry Pride, Revlon agreed to sell that business to the privately held investment firm of Adler & Shaykin for $905 million.

Last week, Adler & Shaykin alleged that, since Pantry Pride purchased Revlon, Pantry Pride had blocked the firm’s ability to close the deal. The allegations were contained in a lawsuit in which Adler & Shaykin asked the Delaware Chancery Court to order Pantry Pride to complete the sale.

Pantry Pride, a Fort Lauderdale, Fla.-based operator of supermarkets and other retail outlets, has declined comment on the suit.

Rorer Group, based in Fort Washington, Pa., makes and markets pharmaceuticals and surgical equipment. Its products include Maalox antacids and Ascriptin analgesics. The company earned $44.3 million in 1984 on sales of $522 million.

Dow Chemical owns 9.5% of Rorer’s stock.

With the addition of Revlon’s prescription drug unit, Rorer’s annual sales would approach $1 billion. The unit consists of two companies, Armour Pharmaceutical and USV Laboratories, which had a combined operating profit of $83.7 million last year on sales of $409.6 million.