Blockbuster Entertainment Corp. has completed its acquisition of Erol's Inc., purchasing the chain of 200 videocassette-rental stores for $10 million less than originally anticipated.
The sale, which was completed Friday, was the culmination of a purchase agreement reached Dec. 14, 1990. But the purchase price was revised from $40 million to $30 million, according to Robert A. Guerin, Blockbuster senior vice president.
Guerin refused to comment on why the purchase price had dropped significantly.
Blockbuster said in a press release that the $30 million was paid through a combination of cash, common stock, debt assumption and promissory notes.
Guerin said there are about 120 Erol's locations in the Baltimore-Washington metropolitan area and all will continue to operate as Erol's stores during the immediate future.
"We will try to make the stores more exciting and offer more copies of the newest movies," Guerin said. "That would happen immediately, to make the store more attractive and get more customers into them."
Calls to local Erol's and Blockbuster's stores yesterday indicated that memberships were not interchangeable.
Over the next 12 months, Blockbuster will offer its current franchise-holders the option of purchasing the Erol's locations and converting them to Blockbuster's stores, Guerin said.
Erol's owns and operates stores in the Washington-Baltimore area, Philadelphia, Cleveland and Chicago, and in Richmond and Norfolk, Va.