The effectual buyout of the Maybelline company was now $132.3M!

Alan A. Ragland and Sharrie Williams

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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!

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.