As I march through the history of Maybelline's mergers and buyouts, I have to pause and acknowledge my great uncle, Tom Lyle Williams, founder of the Maybelline Company and Abe Plough, the man who bought Maybelline in 1967. Both men had similar backgrounds but two distinct ways of doing business. Tom Lyle Williams was all about loyality to his family and employees, while Abe Plough was all business, expansion and profit. They both served the Maybelline Company and my family profited greatly.
Showing posts with label Abe Plough. Show all posts
Showing posts with label Abe Plough. Show all posts
MAYBELLINE COMMERCIAL'S ROCK THE 1970's
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Original Quiz Kid Mary Ann Anderson |
Mary Ann Anderson joined the Chicago's original Maybelline Company in 1964, soon after Ultra Lash Mascara was born. Up until that time, she worked for the agency that handled Maybelline's advertising account.... but when she was unexpectedly fired... Tom Lyle Williams, realized her talent and immediately hired her as Maybelline's advertising executive. The funny part of the story is... she still worked with the agency that fired her... however, now as their, boss so to speak. After the Maybelline-Plough merger, Mary Ann moved to Memphis with Plough and held her position as Vice President of Advertising.
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Mary Ann Anderson views prospective Television commercials |
Schering-Plough and moves to Little Rock Arkansas.
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My great uncle, Tom Lyle Williams with my father, Bill Williams looking at a display of Blooming Colors and False Eyelashes in 1973. Sent to TL from Abe Plough, from the new factory in Memphis. |
Maybelline get's a FACE LIFT to attract exploding youth market and stockholders rejoice.
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Maybelline Ad -1969 |
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Great Lash was born in 1971 |
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Blooming Colors introduced in 1972 |
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Maybelline introduces face make up in 1977 |
And who better to take over the growing youth market's desire for more, more, more products and sparkling ads, but Chicago's original Maybelline Company Executive Mary Ann Anderson....Stay tuned as her story unfolds tomorrow.
PRE-MERGER
Thomas Lyle Williams Pr. & Tr.
Thomas L Williams Jr Exec VP & Sec
John W Cole VP Pur
Harold W Ragland VP Sales
Harris A Neil Jr Prod
Mary Ann Anderson Adv
POST-MERGER
Abe Plough Pr
Harry B Solmson Exec VP
R Lee Jenkins VP
John W Cole VP Pur
Herbert H Bunchman Sec
Sam B Hollis Tr
Harris A Neil Jr Prod
Mary Ann Anderson Adv
After Harris A. Neil left Plough and moved to Colorado to start a new career, only one original Maybelline Executive remained with Plough, Mary Ann Anderson.
After Maybelline-Plough merger, Abe Plough failed to carry out his promise to Tom Lyle Williams and his commitment to Maybelline employees.
According to a letter from Tom Lyle Williams Jr., to all Maybelline employees, dated October 6,1967:
"We hardly need to say that one of the paramount considerations that caused us to select Plough, Inc., instead of other concerns, was their agreement to continue to operate our business in the Chicago area and thus assure your ability to continue with the Company if you with." http://www.maybellinebook.com/2013/05/original-newspaper-articles-and-letters.html
After the merger was a done deal, Abe Plough, reniged on his promise to Tom Lyle Williams and moved Maybelline to Memphis. This caused most of the original Maybelline employees, including Harris A. Neil Jr., to resign and find new employment. The loss of the tight knit group of employees that ran Maybelline so well, caused "Plough's, Maybelline Company," to tail spin, as far as production and distribution were concerned.
Tom Lyle Williams felt a personal obligation to help his devoted employees, (who had been promised their job's would continue after the merger,) to have a fair severance pay and help them until they relocated.
The letter outlined an employee gift that T. L. had put together, whereby each employee would receive a gift of $1000 tax free for each year of employment, from date of hire to December 31, 1967.
The letter from Rags Ragland gives some insight into the problems Plough faced after the the original Maybelline executives were no longer involved.
Stay tuned as Harris A. Neil Jr.'s, "Chicago's Maybelline" continues...
"We hardly need to say that one of the paramount considerations that caused us to select Plough, Inc., instead of other concerns, was their agreement to continue to operate our business in the Chicago area and thus assure your ability to continue with the Company if you with." http://www.maybellinebook.com/2013/05/original-newspaper-articles-and-letters.html
After the merger was a done deal, Abe Plough, reniged on his promise to Tom Lyle Williams and moved Maybelline to Memphis. This caused most of the original Maybelline employees, including Harris A. Neil Jr., to resign and find new employment. The loss of the tight knit group of employees that ran Maybelline so well, caused "Plough's, Maybelline Company," to tail spin, as far as production and distribution were concerned.
Tom Lyle Williams felt a personal obligation to help his devoted employees, (who had been promised their job's would continue after the merger,) to have a fair severance pay and help them until they relocated.
The letter outlined an employee gift that T. L. had put together, whereby each employee would receive a gift of $1000 tax free for each year of employment, from date of hire to December 31, 1967.
The letter from Rags Ragland gives some insight into the problems Plough faced after the the original Maybelline executives were no longer involved.
Stay tuned as Harris A. Neil Jr.'s, "Chicago's Maybelline" continues...
The new face of Maybelline in 1967 - Abe Plough
Abe Plough built a business empire, (Plough Inc.)
which included drugs, cosmetics, (Maybelline) and St. Joseph’s Aspirin. His company merged with Schering in 1971, forming one of the largest drug companies in the world, (Schering Plough.)
It was during the Schering Plough era that Great Lash was born and is still the number 1 mascara in the world.
Here are the original letters between Abe Plough and his new employees at the Maybelline Company, after the Maybelline - Plough merger.
Letters most graciously given to me by Maybelline Executive
Harris A. Neil Jr.

As a teenager, Abe Plough was drawn to the drug business, working in a local drug store. In 1908, he started the Plough Chemical Company in a room above his father’s store. Plough created an antiseptic healing oil that he claimed was “a sure cure for any ill of man or beast.” From this modest beginning, Plough built a business empire.
Stay tuned tomorrow for more letters and newspaper clippings from "Maybelline Chicago, 1915 -1968"
By Harris A. Neil Jr.
The Maybelline Company operated “beneath the radar”
9. END
NOTES AND FILE MATERIALS
By Harris A. Neil Jr.
This
closing section contains miscellaneous materials from my files that
relate to the previous recollections. They are in more or less
chronological order, unless I missed a date here or there.
All
of this material covers events beginning with the Plough merger, with
nothing prior. I submit that this is because the company operated
“beneath the radar” before the merger, keeping a low profile.
This was a shadow of T. L.’s character; just like him, the company didn't bring attention to itself.
The
material following is not captioned since most of it stands by
itself; however, here are a few comments, in sequence to the sheets
included: The
first four sheets announce the merger, followed by sheets that relate
to that event;
There
are two sheets that reflect Plough’s issuance of a “Qualified
Stock Option” to certain key personnel of Maybelline. Very shortly
after its issuance in early 1968, the stock effectively split 2-for-1.
It’s all academic, because knowing the group receiving the option I
don’t think anybody survived to exercise any of it, or at most only
the first annual increment;
Then
there’s a note from the First National Bank of Chicago from early
1969. It contained the second installment of T. L.’s gift (Alas, I
must have lost the first announcement from mid-1968.);
Two
copies of letters Rags Ragland wrote to me follow. Even though
they’re over five years apart, they appear chronologically, because
I have no other material from the intervening years;
The
obituary for Abe Plough follows, source and date unknown. Doing the
math from his life story, it should have been in 1984;
Though there are no documents in the file, Mayelline was sold to a investment group after Schering-Plough.
This was another step leading to the eventual home that
Maybelline would find with the L’Oreal people, where I hope they
live happily ever after!
Today Schering-Plough is known as MERCK.
Today Schering-Plough is known as MERCK.
Stay tuned for the actual documents to be posted on The Maybelline Blog.
Maybelline - Plough Merger in 1967 starts off as a Nightmare!!!
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Harris A. Neil Jr. with his friend DeAnne |
6.
THE PLOUGH MERGER
By Harris A. Neil Jr.
The
morning of Saturday, October 7, 1967 began normally enough at our
house. My wife and I got our two boys, ages 4 and 2, down for
breakfast and set about putting it on the table. Then I went to pick
up the Chicago Tribune from the front lawn, for something to read
while we were eating. After a while I got to the Business Section,
and down at the lower half of the first page was a headline—
Maybelline
and Plough Agree to Merger Plan
102.3
Millions Are Involved
This
was the first I had heard of the merger, and I didn't know how to
take it. First I felt left out, wondering why I hadn't been in on
this news. Then it went down hill from there, and finally I did
something I’d never done before: I picked up the phone and called
Tom Jr. at his home.
Despite
what we now know was a marathon work schedule to get the merger
complete, Tom couldn't have been more concerned or helpful in our
conversation. He took half an hour or so and helped me understand why
the lead-up to the announcement had to be held in secrecy. After our
discussion he had me fully on board with a new perspective, and that
helped a lot. Incidentally, that was the last time I either talked
with or saw Tom. He retired immediately.
Monday
morning came, and walking in to work was like entering a morgue.
Everyone was in a daze, seeking information, and nobody could help
much. I did get some insight from John Cole, and that helped. The
biggest shock was that Tom Jr., Rags Ragland and Dorothy Molander
were no longer with the company, they had all retired. The four
executive offices now had only two occupants, John Cole and myself.
Tom’s and Rags’s offices sat vacant as a reminder of the event.
It was spooky.
As
days went on, we began to get visits from various Plough executives
and managers, and even Abe Plough himself. Most of my own
contact was with their Production Vice President, Joe Sternberger and
his staff. In particular, the Industrial Engineering Department group
of six or so showed up regularly beginning almost at once, and began
asking questions to gain quick knowledge of the Maybelline operation.
This took time from my other duties and was redundant, but it went
with the territory.
Somewhere
in this time period Mr. Plough made his first visit to the company
with Joe Sternberger. Since I was the youngest and most expendable
member of our management group, I fell into the job of picking them
up at O’Hare field and bringing them downtown to their hotel or to
the company. This became a repeating pattern, whenever Mr. Plough
came to town I’d pick him up with whomever he was with on that
trip. It could be Joe, or Lanny Smith, or just about any of his key
executives. I began to dread these runs to the airport.
Mr.
Plough was old even then, and boasted that he had reached the age
where he could draw full salary and could also collect full Social
Security! He treated me with almost mock respect, calling me “Mistah
Neil.” I cringed when I heard that, because he would then follow up
with a work-related question, to which of course he already knew the
answer. All this went on while I was driving in Chicago traffic,
getting those people either downtown or to the building on Ridge
Avenue. By some miracle we always made it.
There
was so much going on in this early period that it’s hard to sort it
out, but one thing that they saw immediately was the woeful lack of
space we were working in. Also, in the Plough operation they had a
regional distribution system for order shipment, spread across the
country. As I remember it, they had distribution centers in Cartaret,
New Jersey; Miami, Florida; Memphis, Tennessee; LaMirada,
California; and in Alsip, Illinois.
To
integrate the Maybelline product line into this decentralized system,
Joe took the helm and immediately had us put a full second shift,
bolstering the small night shift we had at the time. Plough also
found and leased a warehouse space near the Ridge facility, which we
called “Wolcott” after the street location. This became the
finished goods warehouse and shipping point. The idea was to ship
merchandise
not directly to customers but to the regional distribution points and
have them handle customer shipments.
The
Wolcott facility was a rather quiet setting compared to the hectic
pace that was going on at the Ridge location. Herb Zimmerman, who
succeeded Ches Haines, when he retired, was more or less in charge over
there, continuing as Traffic Manager. I got over there at times too,
in the course of my job.
One
of the things that developed in this arrangement was that Rags Ragland, would
visit over at Wolcott. Of course he was now in retirement, but he
bled Maybelline and it hadn't let go of him yet, nor he of the
company. This also put him into the changing picture, and he didn't like what he saw or heard any more than the rest of us. However, he
handled his observations always in the context of his investment, and
that part of it was moving along very well.
By
the spring of 1968 I came to the personal conclusion that I was not
fitting into the Plough template at all, and felt very out of place.
It was mutual, and finally one day I made a mistake and had a
red-faced scene with one of the Industrial Engineers who had been
bugging me. Joe got wind of it and called me into John Cole’s
office for a “woodshed” session. He raked me over the coals
pretty well, but part of it was positive, suggesting that I look into
training courses to tame my temper. This I took, and then I surprised
myself and returned Joe’s favor. I thanked him for his thoughts,
and suggested to him that if he and Plough, Inc., continued to come
at the Maybelline operation in the rough-shod way they were going,
“The wheels would fall off.” That ended our discussion, and I
don’t remember ever seeing Joe Sternberger again.
Truth
be known, I was already searching a way to leave the company, and
soon made a connection. My wife and I decided that if we had to make
a move we’d make it a big move, and relocate to Colorado. This we
did, to pursue a franchise business with an outlet in Colorado
Springs, so I submitted my resignation to John Cole.
We
left Maybelline and Chicago in August, 1968 to begin our new life.
After a few setbacks things smoothed out for us, and the memories of
Maybelline and all those wonderful people began to fade, but not
altogether.
In
early 1968, Dun and Bradstreet listed the Maybelline management group
(as of 1967) in its “Million Dollar Directory,” a compilation of
major U. S. companies. They followed later that year with a
“September Cumulative Supplement” that happened to show the
lineup after the Plough merger. Here is how those two listings
looked:
PRE-MERGER
Thomas
Lyle Williams Pr. & Tr.
Thomas
L Williams Jr Exec VP & Sec
John
W Cole VP Pur
Harold
W Ragland VP Sales
Harris
A Neil Jr Prod
Mary
Ann Anderson Adv
POST-MERGER
Abe
Plough Pr
Harry
B Solmson Exec VP
R
Lee Jenkins VP
John
W Cole VP Pur
Herbert
H Bunchman Sec
Sam
B Hollis Tr
Harris
A Neil Jr Prod
Mary
Ann Anderson Adv
This
is another way of expressing the sad story that had unfolded, even
that early in the merger. There would be more sadness.
1915 -1967
Maybelline's 1966 "ULTRA" products, reached out to the booming teenage market, before the Plough Merger.
After the Plough merger Maybelline-Plough incorporated "ULTRA LASH" into a mini-make-up kit with new colors and products. Up until 1970, "Ultra Lash" had been the best selling mascara in the world.
Maybelline Great Lash was born in 1971 and is still the number one mascara of all time.
The effectual buyout of the Maybelline company was now $132.3M!
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Alan A. Ragland and Sharrie Williams |
Excerpted from a letter from
Alan A. Ragland. Ragland also wrote the preface for The Maybelline Story
The Maybelline Company was acquired by Plough, Inc. effective 2/28/68. Negotiations were currently going on with American Cyanamid, Revlon, and Kimberly Clark. Rags Ragland, The Marketing genius Tom Lyle hired in in 1933, had owned Plough stock and was the unique influence in recommending Plough as a suitor to the Maybelline Co. Ragland's reasoning was that he knew that Plough was in a solid enough position to buy the Maybelline and also due to the leverage factor, he knew that Plough would be a preferred candidate. Plough was in a far superior leveraged condition in that the company had much fewer shares outstanding.
During the 11th hour of negotiations, Ragland suggested to Tom Lyle's son Tom Jr., that Maybelline include Plough in the bidding: Tom's initial reaction was "Rags, they do not have the money"... Ragland's response was, "Yes, they do Tom. I know their circumstances, as I have been a stockholder for years and know they are cash heavy." Tom called Abe Plough and the next day
Plough was quickly and shrewdly chosen as the suitor: They offered a minimum of $100M and there was a period of grace, whereupon the stock would float, then a specific day, which was 2/28/68 that the Plough stock price would be "pegged" for the official exchange. On 2/28/68 the price of Plough had rallied so dramatically that the effectual buyout of the Maybelline company was now $132.3M! Yes, it was leverage that caused this! Demand plus fewer shares caused a stock breakout, which is a scenario seen on Wall Street each day.
In 1973 Schering, the 2nd largest pharmaceutical company in the world and Plough merged. Each of the stockholder's received 1.32 shares of Schering for every share of of Plough that they had owned.
Abe Plough and Lanny Smith flew up with their executive staff in their private jet from Memphis to talk to Maybelline in Chicago ... post haste!
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