Wasserstein Perella paid $300 Million for Maybelline in 1990, replacing Linda Carter with Christy Turlington and adding the tag line, Maybe She's Born with it, Maybe it's Maybelline

In 1991, the company adopted its current advertising slogan,
 "Maybe She's Born With It. Maybe It's Maybelline

Schering did not belong in the eye beauty business and the company found this out after abut ten years.  Maybelline was sold to an independent buyer and could not be bought for years on any stock exchange.  this independent buyer then decided to sell 51% on an IPO basis...independent public offering, and then this was was accomplished.  Maybelline in the early 90's could be bought as a "pure play" on the "Big Board."  Maybelline for the first time in history could be bought alone.  A short number of years later, the company was bought out by L'Oreal, which is a French cosmetic manufacturer and this is where Maybelline stands today.  (From a letter written by Rags Ragland Jr.)

Wasserstein Perella, updated the brand's image by replacing former Wonder Woman star Lynda Carter with model Christy Turlington, 

Maybelline Whisked Away By New Suitor

By George Lazarus | June 8, 1990

Nearly in the blink of an eyelash, Schering-Plough Corp. has found a new buyer for its Maybelline operation. The new parent of Maybelline is Wasserstein Perella, one of the more prominent Manhattan wheeler-dealer firms, which plunked down $300 million for the Memphis-based cosmetics maker. That price is essentially the same as MBP Acquisition Corp., another investment group, agreed to in early April in cutting a deal for Maybelline, a firm with annual sales of about $300 million.http://articles.chicagotribune.com/keyword/wasserstein-perella/recent/5

In appreciation to Harris A. Neil Jr. for the newspaper clippings used on today's post.

Obituaries - Maybelline Founder Tom Lyle Williams 1896 - 1976 and Plough Inc. Founder, Abe Plough 1892 -1984.

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.

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...

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.

Maybelline founder, Tom Lyle Williams regrets not bringing in the next generation to protect the Company, like Estee' Lauder did with her family

Alan A. Ragland
 and Sharrie Willilams

Excerpted from a letter from Alan A. Ragland, (Rags Ragland's son.)  Alan also wrote the preface for The Maybelline Story and the Spirited Family Dynasty Behind It. Copyrighted 2010, Bettie Youngs Books.


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 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!


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.



Excerpt from a letter written by Tom Lyle to Rags Ragland in Dec. of 1967 when Maybelline was sold to Plough Inc. explaining why Tom Lyle sold the company and his sadness in not preparing the younger generation of the family to carry on after him.

I will be posting the letters from Harris A. Neil next week so stay tuned for more priceless Maybelline History.

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;

Finally, there are two articles covering Schering-Plough’s intent to sell Maybelline.

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.

Stay tuned for the actual documents to be posted on The Maybelline Blog.

Maybelline's generous gift to all it's employees received absolutely no notice or media attention.

7. THE GIFT

 By Harris A. Neil Jr.

Tom Lyle Williams at his
 home in Bel Air California,
  May, 1968 click to enlarge

On a Saturday in late May, 1968 all eligible Maybelline employees received a letter by registered mail with an announcement—and a check. The announcement was in a letter signed by T. L., and routed through the First National Bank of Chicago, Trust Department.  “It 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 first year was not in the count, possibly to consider the recent influx of new people in the Plough era. So the count began one year after a person’s date of hire and ended on January 31, 1967.  In further detail, the announcement explained that, under current IRS Regulations, there was a limit of $3000 allowed to both parties tax free, so the total gift, if large enough, would be divided into annual installments of $3000 each. The first check, as large as $3000, was included with the announcement as the first or total payment, depending on eligibility.

That Monday morning the joy was everywhere, people cried and hugged each other, and it was hard to get any work done. Over a short time the word got out to the Plough group as they visited Chicago, and their reaction was one of “sour grapes.” They already expressed views that we were overpaid as a group, and now this! That didn't dampen our collective joy; it was something they’d just have to get over.

It’s hard to relate the impact of this gift across the Maybelline work group. The amount, $1000 for each year of service, applied to every employ without regard to pay level or position with the company. Thus, you could say that it helped the lower-placed person more than a more advanced supervisor or manager. Also, there was no upper eligibility as to time of employment, so a more veteran employee was in for a larger share. In the extreme, I believe this

meant that the longest-serving employee came in for around $33,000, in equal payments of $3000 annually with a final finishing payment to cover all eligible time.

How much was this gift worth, in total? I have no idea, except that it ran into many thousands of dollars. Despite the magnitude of T. L.’s generosity, the gift got absolutely no notice. It escaped media attention, which was very much T. L.’s nature, and the way he would want it.

Almost more than the monetary value of the gift, it gave every person receiving it a big morale boost right when they needed it. Soon enough, the company would be moved physically, first to Memphis then to North Little Rock, Arkansas. To my knowledge, only two people from the “Old Maybelline” group made it to North Little Rock. It was over.  

Stay tuned tomorrow as Harris A. Niel Jr. continues...

Maybelline - Plough Merger in 1967 starts off as a Nightmare!!!

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.

Tom Lyle Williams, MAYBELLINE'S Golden Rule!

Tom Lyle Williams, shared his Pot of Gold, at the end of the Rainbow, with everyone in his life.

Click picture to enlarge.

This picture of Tom Lyle with his niece, Neppy Williams-Corbett and his nephew, Noel A. Williams wife, Jean, was taken in Tom Lyle's home in Bel Air in 1968, right after the Maybelline company was sold to Plough Inc.  Notice the 24K gold plated beams between the plate glass window. 

Here is a story about Tom Lyle's generosity, given to me by his great niece and Mabel and Chet's granddaughter, Linda Hughes.
 
When Maybelline was sold, each employee was given $1,000 for each year they worked for the company. Even those who hadn't been there a full year got $1,000. Tom Lyle's secretary Dorothy (aka Ducky) ended up with  $35,000 as did another secretary called Jimmie.  Jimmie called Mabel, to ask her to relay to TL how grateful she was that she could retire after she got her $30,000 check. At the time my parents had a bookstore and a former employee came in and told them he was bowled over to receive $8,000.  ( Dorothy also received one million dollars from her percentage in stock as well.)
   
Read more about Tom Lyle Williams, a secret American Icon and the great things he accomplished during his lifetime, in The Maybelline Story.
 
A cute story about Emery Shaver, Tom Lyle's lifetime partner of 50 years, given to me be his niece, Joyce Dennehy, (Mabel and Chet's, daughter.)
 
When my family drove from Chicago, to California, to visit Uncle Lyle, when we were kids:  One day it was rainy and my brother Tom was grumbling a bit about having nothing to do. He said to Emery, "don't you have an indoor swimming pool?"   Emery's response was "no but I have an ingrown toenail."

I will be making Frances' Chocolate Icebox Desert tomorrow on The Morning Scramble, with Tonya Mock, on AZTV.  Check into the Maybelline Blog Sat for the video.  

Bill the Clenet will be making his way to the Santa Barbara Concours D' Elegance Sat. and will be shown on Sunday at the Polo Fields. Watch for video's of his adventure.

Maybelline Company sells to Plough Inc. Dec. 1967.

Maybelline ads in 1967 were all about the ingenue, false eye lashes and fake hair.


Maybelline ad below was on the back of this cover in Dec, 1967

Maybelline introduces false eye lashes in 1967

False eye lashes created the big eye look that would really bloom in 1970.

I bleached my hair back blond, wore a "Fall, (fake hair,) and fell in love with false eye lashes, even wore up to three pair, two on top and one on the bottom.  Here I am on my 20th Birthday, right after filming 5 days of a show called Dream Girls.  We had no Idea Unk Ile was in serious negotiations to sell Maybelline this year.

My mom, Pauline, with her new Datson 2000 roadster convertible, bought in 1967. 

Cousin Chuck Williams, aka BB1, with his girlfriend Kathy, her little brother Michael and his dad, Noel Allen, Dec. 1967, leaving the hotel to catch a plane to Maui, Hawaii. The negotiations for the sale of Maybelline were in the 11th hour at the time this picture was taken. Our lives were about to radically change overnight.                         

My dad Bill, Unk lle and Nana at our house on Christmas Day, 1967.  Unk Ile was with us from 5 o'clock in the evening until 5 o'clock in the morning.  He knew the sale was complete and never mentioned it once.  We would get the shock of our lives in Jan. when a check came in the mail making all five original families multi-millionaires.   

The details of the sale of Maybelline to Plough Inc are spelled out in The Maybelline Story, I hope you get your copy today.  Buy a signed copy from me at http://www.maybellinestory.com/.  Also check my new bio picture, just click biography on the tap on my website.