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83-559: MacAndrews & Forbes Incorporated is an American diversified holding company wholly owned by billionaire investor Ronald Perelman . Current investments include leading participants across a wide range of industries, from cosmetics and entertainment to biotechnology and military equipment. The principal interests of MacAndrews & Forbes include AM General , Harland Clarke, Merisant , RetailMeNot , Revlon , Scantron , Scientific Games Corporation , SIGA Technologies , Valassis and vTv Therapeutics. MacAndrews & Forbes & Co.

166-429: A market inefficiency , which undervalues the true strength of these stocks. In her 1999 book No Logo , Naomi Klein provides several examples of mergers and acquisitions between media companies designed to create conglomerates to create synergy between them: A relatively new development, Internet conglomerates, such as Alphabet , Google's parent company belong to the modern media conglomerate group and play

249-575: A $ 1.3 billion government cash advance to Perelman's larder while Sooner only provided $ 1.2 billion in assets along with the typical government guarantees. Sooner Federal was not only the last S&L Perelman bought, but the first he sold; In August 1992, he sold the pieces of Sooner to Bank of Oklahoma and Fourth Financial Corporation for $ 31.4 million. The following month he sold the rest of First Gibraltar to BankAmerica for $ 110 million, retaining four branches in Plano, Texas and $ 1.2 billion of assets in

332-567: A $ 175 million payment to Resolution Trust Corporation . Before 1995 ended, Perelman added two more thrifts to his collective: SFFed's $ 4.1 billion of assets for $ 250 million and Home Federal Financial's $ 735 million of assets and $ 662 million of deposits for $ 70.6 million. Just as quickly as he added assets, branches, and deposits in California, he dumped what he had elsewhere in the country. In 1995 alone he sold off 79 branches with $ 4.3 billion in deposits spread out across five states. 1996 went

415-702: A consortium of former New World executives. MacAndrews next purchased Pantry Pride Inc., in June 1985. Its three retail supermarket chains were sold off within months. In 1985, Perelman also took on his biggest deal yet: The Revlon Corporation . Financed with over $ 700 million in junk bonds from Michael Milken's firm, Drexel Burnham Lambert , Pantry Pride Inc. offered to buy any or all of Revlon's 38.2 million outstanding shares for $ 47.5 per share when its street price stood at $ 45 per share. Initially rejected, Perelman repeatedly raised his offer until it reached $ 53 per share, while fighting Revlon's management every step of

498-486: A disorienting and demoralizing experience for executives at acquired companies—those who were not immediately laid off found themselves at the mercy of the conglomerate's executives in some other distant city. Most conglomerates' headquarters were located on the West Coast or East Coast , while many of their acquisitions were located in the country's interior. Many interior cities were devastated by repeatedly losing

581-491: A division of New World as part of the transaction. After Compact shut down, its remaining assets, including Four Star International , were folded into MacAndrews & Forbes. By the end of 1989, MacAndrews refinanced the holding companies' junk bonds for standard bank loans. The bulk of New World's film and home video holdings were sold in January 1990 to Trans-Atlantic Pictures, a newly formed production company founded by

664-441: A five-week trial, the jury deliberated for two days, found in favor of Perelman, and awarded him $ 1.45 billion. The damages stung particularly because Morgan Stanley passed up Perelman's offer to settle the case for $ 20 million. Morgan Stanley maintained that the court case was improperly decided, citing the judge's decision to use Florida law over New York law and her decision to order the jury to consider Morgan Stanley guilty before

747-549: A focus in Asia.) In Japan, a different model of conglomerate, the keiretsu , evolved. Whereas the Western model of conglomerate consists of a single corporation with multiple subsidiaries controlled by that corporation, the companies in a keiretsu are linked by interlocking shareholdings and a central role of a bank. Mitsui , Mitsubishi , Sumitomo are some of Japan's best-known keiretsu, reaching from automobile manufacturing to

830-592: A large profit from the sale. Also in 1989, MacAndrews & Forbes acquired The Coleman Company , Inc., maker of stoves, lanterns, and camping and other recreational equipment, for $ 545 million. Perelman reduced the debt for this purchase by selling the heating and air-conditioning divisions. By the end of 1990 he had sold everything except Coleman's camping equipment and boat businesses, plus added power tool and recreational vehicle businesses. Between 1993 and late 1995 he bought seven more companies for Coleman. In December 1997, Perelman and Al Dunlap met in order to discuss

913-653: A line of makeup, skincare and perfume products that were sold only by uniformed clerks in department stores. The packaging and products were different; many of the containers were designed to resemble Greek sculptures. The early 1960s saw the company become a public company and list its Class A stock on the New York Stock Exchange . This period also saw the third generation of the Factor family, Barbara Factor, Davis Jr. Factor, Donald Factor, Alfred Firestein, and Chester Firestein rising to senior positions within

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996-414: A little slower, but not eventfully. He acquired California Federal Bancorp for $ 1.2 billion, creating the 4th largest thrift in the country with $ 32.3 billion in assets. In 1997, another $ 3.3 billion in mortgages were added courtesy of WMC Mortgage but it was an otherwise quiet year for First Nationwide. In 1998, Perelman negotiated a stock swap with Golden State Bancorp to create the third largest thrift in

1079-605: A major role within various industries, such as brand management . In most cases, Internet conglomerates consist of corporations that own several medium-sized online or hybrid online-offline projects. In many cases, newly joined corporations get higher returns on investment , access to business contacts, and better rates on loans from various banks. Similar to other industries many companies can be termed as conglomerates. Max Factor Max Factor specialized in movie make-up. Until its 1973 sale for US$ 500 million (approximately $ 3.6 billion in 2017 dollars), Max Factor & Company

1162-533: A possible deal between Coleman and Sunbeam Products . Coleman's famous but narrow brand held less growth potential than originally thought and Ronald Perelman wanted out. Coincidentally, Al Dunlap was sitting on a financially insolvent company he wanted to dump. It took until March 2 for them to finally come to an agreement: Perelman sold his entire stake (82%) in Coleman to Al Dunlap in exchange for $ 1.5 billion in cash and $ 680 million of Sunbeam stock. They completed

1245-401: A share in a matter of weeks and continued its downward spiral in the following weeks. Perelman bought control of Sunbeam in an effort to salvage the situation but it was for naught. The company had to file for bankruptcy within three years. On February 17, 2005, Perelman filed a lawsuit against Morgan Stanley . Two facts were at issue: Did Morgan Stanley know about the problems with Sunbeam and

1328-639: A small slice of many companies in a fund rather than owning shares in a conglomerate. Another example of a successful conglomerate is Warren Buffett 's Berkshire Hathaway , a holding company which used surplus capital from its insurance subsidiaries to invest in businesses across a variety of industries. The end of the First World War caused a brief economic crisis in Weimar Germany , permitting entrepreneurs to buy businesses at rock-bottom prices. The most successful, Hugo Stinnes , established

1411-471: A softer light. At the same time the orthochromatic film, which until that time had been used by the industry, was replaced by super-sensitive faster Panchromatic film which noticeably darkened skin colors. These developments required six months of intensive development to create make-up compatible with the new environment. Because they had been designed for black and white film the existing products were unsuitable for everyday use. This new Panchromatic make-up

1494-459: A suitable make-up for the new film medium. By 1914 he had perfected his first cosmetic product. With this major achievement to his credit, Max Factor became the authority on cosmetics in film-making. Soon movie stars were eager to sample his "flexible greasepaint". For the first few years of the business, Factor personally applied his products to actors and actresses. He developed a reputation for being able to customize makeup to present film stars in

1577-454: A unit of Ronald Perelman 's Compact Video , later that year. Ownership of Compact Video Inc. was increased to 40% in 1989 after the buyout of Four Star International . It was purchased through a golden parachute deal that was negotiated with David Charnay's Acquisition and Ronald Perelman after Charnay was notified of stock purchases made by Perelman in 1989. In 1989, Perelman also acquired New World Entertainment with Four Star becoming

1660-408: A younger, more savvy consumer. Maxi sold products aimed at adolescent tastes, such as lip gloss, color rubs and "mood" lipsticks. Maxi was priced to compete with market leaders Bonne Bell and CoverGirl . Neither Maxi, Geminesse, nor Max Factor were able to lift the company's declining profits and market share. In 1983 Norton Simon was taken over by Esmark , by which time no one in the Factor family

1743-432: Is a company founded solely for the purpose of buying out another company, but without any preselected target company. In Perelman's case, the company was selling 50 million units for $ 10 each. The IPO was being underwritten by Citigroup , but on December 12, 2008, a year after filing for an IPO, MAFS opted to withdraw their application for the "protection of investors". As of 2019, MacAndrews & Forbes held interests in

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1826-472: Is currently China's largest civilian-run conglomerate by revenue. In South Korea , the chaebol is a type of conglomerate owned and operated by a family. A chaebol is also inheritable, as most of the current presidents of chaebols succeeded their fathers or grandfathers. Some of the largest and most well-known Korean chaebols are Samsung , LG , Hyundai Kia and SK . In India, family-owned enterprises became some of Asia's largest conglomerates, such as

1909-571: The Aditya Birla Group , Tata Group , Emami , Kirloskar Group , Larsen & Toubro , Mahindra Group , Bajaj Group , ITC Limited , Essar Group , Reliance Industries , Adani Group and the Bharti Enterprises . In Brazil the most important conglomerates are J&F Investimentos , Odebrecht , Itaúsa , Camargo Corrêa , Votorantim Group , Andrade Gutierrez , and Queiroz Galvão. In New Zealand, Fletcher Challenge

1992-758: The Savings & Loan crisis in 1988 when along with Gerald J. Ford he bought five insolvent thrifts with $ 12.2 billion in assets and $ 5.1 billion in federal aid for $ 315 million. The five banks originally operated as a single entity named First Texas Bank , but the name changed to First Gibraltar after about a week. Perelman's turn-around manifested as trimming the payroll, selling branches, and dumping of $ 2.5 billion of underperforming assets. In 1990, Perelman added San Antonio Savings Association and Sooner Federal to First Gibraltar for $ 10.1 million and $ 5.1 million, respectively. The purchase of San Antonio added $ 1.1 billion of healthy assets, $ 1.2 billion unhealthy assets, and

2075-652: The United States , conglomerates became popular in the 1960s as a form of economic bubble driven by low interest rates and leveraged buyouts. However, many of them collapsed or were broken up in the 1980s due to poor performance, accounting scandals, and antitrust regulation. In contrast, conglomerates have remained prevalent in Asia, especially in China , Japan , South Korea , and India . In mainland China , many state-affiliated enterprises have gone through high value mergers and acquisitions , resulting in some of

2158-579: The highest value business transactions of all time. These conglomerates have strong ties with the government and preferential policies and access to capital. During the 1960s, the United States was caught up in a "conglomerate fad " which turned out to be a form of an economic bubble . Due to a combination of low interest rates and a repeating bear-bull market , conglomerates were able to buy smaller companies in leveraged buyouts (sometimes at temporarily deflated values). Famous examples from

2241-440: The 1960s include Gulf and Western Industries , Ling-Temco-Vought , ITT Corporation , Litton Industries , Textron , and Teledyne . The trick was to look for acquisition targets with solid earnings and much lower price–earnings ratios than the acquirer. The conglomerate would make a tender offer to the target's shareholders at a princely premium to the target's current stock price. Upon obtaining shareholder approval,

2324-627: The 1980s, General Electric also moved into financing and financial services , which in 2005 accounted for about 45% of the company's net earnings. GE formerly owned a minority interest in NBCUniversal , which owns the NBC television network and several other cable networks . United Technologies was also a successful conglomerate until it was dismantled in the late 2010s. With the spread of mutual funds (especially index funds since 1976), investors could more easily obtain diversification by owning

2407-603: The United States, some of the examples are The Walt Disney Company , Warner Bros. Discovery and The Trump Organization (see below). In Canada, one of the examples is Hudson's Bay Company . Another such conglomerate is J.D. Irving, Limited , which controls a large portion of the economic activities as well as media in the Province of New Brunswick . Some cite the decreased cost of conglomerate stock (a phenomenon known as conglomerate discount ) as evidential of these disadvantages, while other traders believe this tendency to be

2490-554: The Vision Care division was sold for $ 574 million, and, in 1988, the National Health Laboratories division became a publicly owned corporation. Additional makeup lines were purchased for Revlon: Max Factor in 1987 and Betrix in 1989 (they were later sold to Procter & Gamble , in 1991). Despite Perelman's regular cleansing of upper management and injecting millions of dollars into the company, Revlon

2573-661: The best possible light on screen. Among his most notable clients were Mabel Normand , Ben Turpin , Gloria Swanson , Mary Pickford , Pola Negri , Jean Harlow , Claudette Colbert , Bette Davis , Norma Shearer , Joan Crawford , Lucille Ball and Judy Garland . In 1918, Max Factor completed development of his "Color Harmony" face powder which, due to its wide range of shades, allowed him to customize and provide more consistent make-up for each actor. He created many unique looks for notable actresses, such as Clara Bow 's heart-shaped/ pierrot lips. Years later, he exaggerated Joan Crawford 's naturally full lips to distinguish her from

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2656-416: The case to be reopened because the hiding of email evidence was "a classic example of fraud on the court". The trial court rejected his arguments, but as of January 2009, he is beseeching Florida's 4th Circuit to reopen the case. In 2007, Perelman filed the paperwork for a SPAC (Special Purpose Acquisition Company) called MAFS Acquisition through his holding company MacAndrews & Forbes Holdings. A SPAC

2739-485: The company agreed to merge with Norton Simon. This event was marred weeks later by the sudden death of Alfred Jay Firestein at the age of 48. Chester Firestein succeeded him as president of the company, only to resign three years later in 1976, to devote his time to his personal interests; he was replaced by a non-family member. His departure, together with that of Max Factor, Jr., in the same year, meant that there were now no members of Max Factor's immediate family working for

2822-420: The company. During Chester Firestein's time in charge the company expanded overseas and launched many new products including Musk For Men, UltaLucent Waterproof make-up and, in 1975, the successful Halston line of fragrances, which quickly became the second best-selling designer fragrance in the world, trailing Chanel No. 5 . It was under Norton Simon that Max Factor launched "Maxi", a line of makeup aimed at

2905-435: The company. In 1986, Ronald Perelman made several attempts on behalf of MacAndrews & Forbes to take-over Gillette Company , offering $ 4.12 billion, and eventually $ 5.7 billion. In October 1987, Perelman withdrew the last offer. In 1988, Consolidated Cigar was sold. Attempted take overs were targeted at CPC International . Ronald Perelman's controlling buyout of Compact Video was in 1986. Four Star International

2988-428: The company. His place of work is now a museum located in downtown Hollywood. By the early 1970s Sidney Factor had retired from the board, and Barbara Factor, Donald Factor and Davis Jr. Factor from the third generation had also left the company to pursue other interests. As a result, there was decreasing family involvement. Davis Factor was still board chairman while Alfred Jay Firestein was president and CEO when in 1973

3071-455: The conglomerate usually settled the transaction in something other than cash, like debentures , bonds , warrants or convertible debentures (issuing the latter two would effectively dilute its shareholders down the road, but many shareholders at the time were not thinking that far ahead). The conglomerate would then add the target's earnings to its earnings, thereby increasing the conglomerate's overall earnings per share . In finance jargon,

3154-646: The country with $ 50 billion of assets. The deal left Golden State's shareholders the majority, but Perelman's camp still controlled the company. Everything remained quiet until May 2002 when Citigroup announced plans to buy Golden State for $ 5.8 billion, but ultimately reduced the offer to $ 4.9 billion due to a stock drop. Citigroup's final offer was 0.821 shares of Citigroup common stock and $ 7.47 cash for every share of Golden State exchanged, which converted Perelman's 43 million shares of Golden State into $ 321,210,000 in cash plus 36,124,000 shares of Citigroup. All things considered, Perelman expected to make about $ 2 billion off

3237-406: The deal on March 30, despite a sell-off triggering press release from March 19 that said Sunbeam would not meet sales expectations. On April 3, another press release took Sunbeam's stock from bad to worse: It would not only fall short of sales expectations for that quarter, but it would barely meet the sales expectations of two years ago. The stock went into a tail spin, falling from $ 54 a share to $ 24

3320-550: The deal, but because he had quasi-sold many of his shares in the past, he probably gained substantially less than that. Andrews Group, Inc. was formed from the corporate shell of the former Compact Video. Andrews Group purchased Marvel Entertainment Group, Inc. in 1989 and later its former parent company New World Entertainment, Inc. In 1989, Andrews Group lost $ 14.8 million with a negative net worth of $ 10 million. At this time, MacAndrews & Forbes owned 57%. In 1991, Marvel Entertainment Group, Inc. went public with 30% sold to

3403-509: The early 1930s. In 1935, Max Factor opened the Max Factor Salon , which was frequented by virtually all of Classic Hollywood 's greatest starlets. While Max Factor was satisfied to remain a specialized supplier of products to the film community, his children were convinced they could grow the company into a much larger enterprise. National distribution began in 1927 when Sales Builders, an established distribution company, obtained

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3486-412: The end came in January 1968, when Litton shocked Wall Street by announcing a quarterly profit of only 21 cents per share, versus 63 cents for the previous year's quarter. This was "just a decline in earnings of about 19 percent", not an actual loss or a corporate scandal, and "yet the stock was crushed, plummeting from $ 90 to $ 53". It would take two more years before it was clear that the conglomerate fad

3569-771: The examples are Adamjee Group , Dawood Hercules , House of Habib , Lakson Group and Nishat Group . In the Philippines , the largest conglomerate of the country is the Ayala Corporation which focuses on malls , bank , real estate development , and telecommunications . The other big conglomerates in the Philippines included JG Summit Holdings , Lopez Holdings Corporation , ABS-CBN Corporation , GMA Network, Inc. , MediaQuest Holdings , TV5 Network, Inc. , SM Investments Corporation , Metro Pacific Investments Corporation , and San Miguel Corporation . In

3652-429: The fastest and largest selling single make-up item to date, as well as the standard make-up used in all Technicolor films. In the 1930s, Factor helped to develop a mask-like device to measure the contours of subjects' faces. He called it the "Beauty Micrometer". Its purpose was to detect even barely-visible structural flaws, that might be magnified and more-noticeable on camera. A technician could then apply makeup to mask

3735-433: The following companies: Conglomerate (company) A conglomerate ( / k ə ŋ ˈ ɡ l ɒ m ə r ə t / ) is a type of multi-industry company that consists of several different and unrelated business entities that operate in various industries. A conglomerate usually has a parent company that owns and controls many subsidiaries , which are legally independent but financially and strategically dependent on

3818-508: The growing film industry. Besides selling his own make-up products he soon became the West Coast distributor of both Leichner and Minor, two leading theatrical make-up manufacturers. When the film industry was beginning to evolve, stick greasepaint (although the accepted make-up for stage use) could not be applied thinly enough, nor did the colors work satisfactorily on the screen. Factor began experimenting with various compounds to develop

3901-719: The headquarters of corporations to mergers, in which independent ventures were reduced to subsidiaries of conglomerates based in New York or Los Angeles. Pittsburgh, for example, lost about a dozen. The terror instilled by the mere prospect of such harsh consequences for executives and their home cities meant that fending off takeovers, real or imagined, was a constant distraction for executives at all corporations seen as choice acquisition targets during this era. The chain reaction of rapid growth through acquisitions could not last forever. When interest rates rose to offset rising inflation, conglomerate profits began to fall. The beginning of

3984-425: The latest changes in studio lighting and film stock. This product was quick to apply as well as non-greasy. It was released to the public in 1948 and was immediately commercially successful. In 1951 the company expanded their range to offer a range of male shampoo, aftershave lotion, deodorant and shaving foams. The introduction of color television lead the company to develop Max Factor Color TV Make-up, which became

4067-516: The many would-be stars copying the Clara Bow look. He also created specific shades: Platinum ( Jean Harlow ), Special Medium ( Joan Crawford ), Dark ( Claudette Colbert ) and Light Egyptian ( Lena Horne ). For Rudolph Valentino , he created makeup to complement the actor's complexion and mask the darkness of his skin on screen. In 1920, Max Factor accepted his son Frank's suggestion and officially began referring to his products as "make-up," based on

4150-452: The mortgage and property management sectors. He renamed the four branches First Madison. It's unclear how much money Perelman made from his savings & loan deals, but it's estimated that he made anywhere from $ 600 million to $ 1.2 billion with most of the profits manifesting as tax breaks elsewhere in his empire. In essence, by owning First Gibraltar he was able to avoid paying hundreds of millions in federal taxes. Perelman jumped back into

4233-503: The most powerful private economic conglomerate in 1920s Europe – Stinnes Enterprises – which embraced sectors as diverse as manufacturing, mining, shipbuilding, hotels, newspapers, and other enterprises. The best-known British conglomerate was Hanson plc . It followed a rather different timescale than the U.S. examples mentioned above, as it was founded in 1964 and ceased to be a conglomerate when it split itself into four separate listed companies between 1995 and 1997. In Hong Kong, some of

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4316-539: The movie Ben-Hur to ensure the skin color of the extras used in filming undertaken in America would match that of the darker-skinned Italian extras in the scenes filmed in Italy. For the 1926 film Mare Nostrum , Max and Frank Factor developed the first waterproof theatrical make-up. By the 1920s, Max Factor was becoming known outside the film community, which led to the company developing an in-house PR department in

4399-652: The new businesses they had recently purchased, and by the mid-1970s most conglomerates had been reduced to shells. The conglomerate fad was subsequently replaced by newer ideas like focusing on a company's core competency and unlocking shareholder value (which often translate into spin-offs ). In other cases, conglomerates are formed for genuine interests of diversification rather than manipulation of paper return on investment. Companies with this orientation would only make acquisitions or start new branches in other sectors when they believed this would increase profitability or stability by sharing risks. Flush with cash during

4482-731: The parent company. Conglomerates are often large and multinational corporations that have a global presence and a diversified portfolio of products and services. Conglomerates can be formed by merger and acquisitions , spin-offs , or joint ventures . Conglomerates are common in many countries and sectors, such as media , banking , energy , mining , manufacturing , retail , defense , and transportation . This type of organization aims to achieve economies of scale , market power, risk diversification , and financial synergy. However, they also face challenges such as complexity, bureaucracy , agency problems, and regulation . The popularity of conglomerates has varied over time and across regions. In

4565-407: The problem. After Max Factor's death in 1938, Frank Factor took the name Max Factor, Jr. , and expanded the still private cosmetics firm, along with members of the immediate family including Sidney Factor, Louis Factor, Davis Factor and Max Firestein. In 1939 Max Factor, Jr., began development of a smear-proof lipstick which would also both be non-irritating and not change color. A kissing machine

4648-714: The production of electronics such as televisions. While not a keiretsu, Sony is an example of a modern Japanese conglomerate with operations in consumer electronics , video games , the music industry , television and film production and distribution , financial services , and telecommunications . In China, many of the country's conglomerates are state-owned enterprises , but there is a substantial number of private conglomerates. Notable conglomerates include BYD , CIMC , China Merchants Bank , Huawei , JXD , Meizu , Ping An Insurance , TCL , Tencent , TP-Link , ZTE , Legend Holdings , Dalian Wanda Group , China Poly Group , Beijing Enterprises , and Fosun International . Fosun

4731-562: The public. Andrews Group bought: In May 1994, New World bought four more stations from the Great American Communications for $ 360 million and four more from Argyle Television Holdings for $ 717 million. The purchase of Genesis and New World set up one of the spokes for the major 1994 television industry realignment in the wake of Fox 's acquisition of NFL rights . Rupert Murdoch bought complete control of New World Communications for $ 3 billion, giving Perelman

4814-488: The remaining 66% stake in MacAndrews & Forbes Group Inc. to take MacAndrews & Forbes Group Inc. private. Also in 1983, MacAndrews acquired Technicolor Inc. Despite the bond debt, in 1984, MacAndrews & Forbes purchased Consolidated Cigar Holdings Ltd. from Gulf & Western Industries , in addition to Video Corporation of America. The Technicolor Inc. divisions were sold off and, in 1988, its core business

4897-442: The rights to advertise, distribute and sell Factor's products. Due to his strong connection with the film industry, Max Factor was able to use celebrity endorsements in advertising. In return for a nominal payment of US$ 1 to the actor, the advertising would also promote the star's latest film. The introduction of sound-on-film led to the replacement of the old noisy carbon arc lights by tungsten lights, which were less hot and created

4980-609: The savings & loan game in a big way in 1994 by buying First Nationwide from the Ford Motor Company for $ 664 million. Ford held onto $ 1.8 billion of First Nationwide's assets valued at $ 444 million, two-thirds of which were considered troubled assets, offered to buy back up to $ 500 million of First Nationwide's other $ 7.9 billion of assets that went bad in the future, and gave Perelman $ 50 million to cover potential severance payments. Perelman quickly boosted its portfolio, adding $ 10 billion worth of mortgages in exchange for

5063-609: The standard for use in color television. In 1955 the company released "Electrique", its first fragrance and three years later "Primitif". In 1956 Max Factor inc. purchased Sales Builders, which had until that time handled all of their national sales and distribution. This led to a complete reorganization of the company's American markets, advertising, sales and distribution division. By the 1960s, Max Factor, Jr., Max Firestein, and grandsons Donald Factor, Alfred Jay Firestein and Chester Lee Firestein were still involved. Under his leadership, in 1965 Max Factor, Jr., established "Geminesse",

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5146-470: The time the company was only able to produce enough to meet studio demand, which delayed commercial release until production could be increased. The company used the release of Vogues of 1938 in August 1937 and five months later The Goldwyn Follies , the second film to use the make-up, to commercially release Pan-Cake to the public, backed by a color-based national advertising campaign. It immediately became

5229-430: The time, Frank Factor took the lead in the two years it took to develop a suitable make-up, initially called the "T-D" and then renamed the "Pan-Cake" series. It was sold in a solid cake form and applied with a damp sponge which offered the advantage of concealing skin imperfections under a transparent matte finish. Its first appearance was in the film Vogues of 1938 . The Pan-Cake make-up was made for on-screen looks but

5312-406: The transaction was " accretive to earnings." The relatively lax accounting standards of the time meant that accountants were often able to get away with creative mathematics in calculating the conglomerate's post-acquisition consolidated earnings numbers. In turn, the price of the conglomerate's stock would go up, thereby re-establishing its previous price-earnings ratio, and then it could repeat

5395-485: The trial began. In 2007, the courts of appeal reversed the judgement. The judges' declared Perelman hadn't provided any evidence showing he'd suffered any actual damage as a result of Morgan Stanley's actions. Perelman appealed, but found himself shot down by the Florida Supreme Court who dismissed it in a 5–0 decision. Undeterred even after that setback, Perelman went back to the trial court and asked for

5478-571: The verb phrase "to make up" (one's face). Until then the term "cosmetics" had been used; "make-up" was considered vulgar, to be used only by people in the theater or of dubious reputation and not in polite society. In 1922, while on holiday in Europe with his wife, Factor visited the Leichner headquarters in Germany. He was by then the biggest retailer of their theatrical stick greasepaint, yet Factor

5561-417: The way. Forstmann Little & Company swooped in and offered $ 56 per share. A brief public bidding war ensued, and Perelman triumphed with an offer of $ 58 per share. As a result, Perelman paid $ 1.8 billion to Revlon's shareholders, but he also paid $ 900 million in other costs associated with the purchase. After the acquisition, Perelman had Revlon sell four of its divisions: Two were sold for $ 1 billion,

5644-425: The well-known conglomerates include Jardine Matheson (AD1824), Swire Group (AD1816), (British companies, one Scottish one English; companies that have a history of over 150 years and have business interests that span across four continents with a focus in Asia.) C K Hutchison Whampoa (now CK Hutchison Holdings ), Sino Group , (both Asian-owned companies specialize business such as real estate and hospitality with

5727-668: The whole process with a new target. In plain English, conglomerates were using rapid acquisitions to create the illusion of rapid growth. In 1968, the peak year of the conglomerate fad, U.S. corporations completed a record number of mergers: approximately 4,500. In that year, at least 26 of the country's 500 largest corporations were acquired, of which 12 had assets above $ 250 million. All this complex company reorganization had very real consequences for people who worked for companies that were either acquired by conglomerates or were seen as likely to be acquired by them. Acquisitions were

5810-401: Was Ronald Perelman misled? During the discovery phase, the judge became exasperated with what she perceived as deliberate stonewalling on the part of Morgan Stanley and ordered the jury to assume Morgan Stanley deliberately and knowingly defrauded Perelman. Hobbled, Morgan Stanley had no choice but to argue that Perelman was too savvy an investor to have fallen for their transparent tricks. After

5893-473: Was constructed to test the formula's resistance to fading. The result was released in 1940 as "Tru-Color" in six shades of red. During World War II, Max Factor developed make-up shades for use by the US Marine Corps in camouflaging faces. In 1947 after 26 months of development by Max Factor, Jr., the company released "Pan-Stik", a cream make-up supplied in stick form and designed to take advantage of

5976-462: Was formed in 1981 from the merger of Fletcher Holdings , Challenge Corporation, and Tasman Pulp & Paper, in an attempt to create a New Zealand-based multi-national company. At the time, the newly merged company dealt in construction, building supplies, pulp and paper mills, forestry, and oil & gas. Following a series of bungled investments, the company demerged in the early 2000s to concentrate on building and construction. In Pakistan , some of

6059-570: Was founded in 1850 by Edward MacAndrews and William Forbes, a distributor of licorice extract and chocolate. In 1978, Perelman purchased a 40% stake in Cohen-Hatfield Jewelers, and in 1980, Perelman, through Cohen-Hatfield Jewelers, bought MacAndrews & Forbes & Co. Through the purchase, Cohen-Hatfield Jewelers was merged into what became MacAndrews & Forbes Group Inc. In 1983, Perelman formed MacAndrews & Forbes Holdings, Inc. Perelman started selling bonds to acquire

6142-531: Was involved in the company's day-to-day operations. A year later Esmark merged with Beatrice Foods , which lumped Max Factor into their Playtex beauty division and moved the Max Factor headquarters from Los Angeles to Stamford, Connecticut. In 1986, Ronald Perelman of Revlon bought the Playtex beauty division for $ 500 million. In 1991, Revlon sold Max Factor to Procter & Gamble for $ 1.5 billion. By

6225-435: Was not only more hygienic, but could be applied thinly and evenly. Soon Max Factor's version was the leading brand. By the 1920s, his sons Davis and Frank were heavily involved in the business, with Davis the general manager and Frank assisting his father in the development of new products. In 1925, the company received its biggest order to date when it had to complete a rush order to supply 600 gallons of light olive makeup for

6308-487: Was on its way out. The stock market eventually figured out that the conglomerates' bloated and inefficient businesses were as cyclical as any others—indeed, it was that cyclical nature that had caused such businesses to be such undervalued acquisition targets in the first place —and their descent put "the lie to the claim that diversification allowed them to ride out a downturn." A major selloff of conglomerate shares ensued. To keep going, many conglomerates were forced to shed

6391-539: Was owned by several generations of the family, becoming an international company during that time. Procter & Gamble purchased it in 1991. Max Factor was born Maksymilian Faktorowicz in Congress Poland , and later moved to Moscow where he was employed as a wig maker. After immigrating to the United States in 1904, Factor moved his family and business to Los Angeles , California , seeing an opportunity to provide made-to-order wigs and theatrical make-up to

6474-529: Was purchased through a golden parachute deal that was negotiated with David Charnay's Acquisition and Ronald Perelman after Charnay was notified of stock purchases made by Perelman in 1989. After Compact shut down, its remaining assets, including Four Star International , were folded into MacAndrews & Forbes. By the end of 1989, MacAndrews refinanced the Holding companies' junk bonds for standard bank loans. Perelman first entered what became known as

6557-424: Was snubbed and kept waiting at reception. Upset at this treatment, he left and immediately cabled his sons to begin selling his own brand of greasepaint. Until then, Factor had made his own greasepaint for his clients, but had made no attempt to market it while he was representing other brands. Now he concentrated on his own products, which he offered in a collapsible tube instead of in stick form. His tube greasepaint

6640-554: Was sold to Carlton Communications for 6.5 times the purchase price. Using the proceeds from the Technicolor division sell off, MacAndrews & Forbes purchased a 20 percent stake in Compact Video Inc., a television and film syndication company. Ronald Perelman's controlling buyout of Compact Video was in 1986. In 1989, Perelman acquired New World Entertainment, with David Charnay's Four Star Television becoming

6723-462: Was trademarked in October 1929. The development of Technicolor film required the company to develop a new line of products as its existing Panchromatic make-up left a slight sheen on the skin which reflected surrounding colors. As a result of how bad they looked in color many actors and actresses refused to appear in color films. Because Max Factor was recovering from being hit by a delivery van at

6806-421: Was unable to turn a profit for several years. As of the first quarter of 2007, it had had one profitable quarter in the previous 32. By 2012, Revlon was rebounding, and its net income had grown to $ 51.5 million. As of April 2014, Revlon was trading at $ 25.45 per share, rising from a low of $ 1.20 per share in 2007. A major cause of Revlon's financial problems was the debt load stemming from Perelman's purchase of

6889-466: Was wearable for day-to-day looks. It was an immediate hit and its advantages led to women stealing it from the film sets and using it privately. Its only disadvantage for everyday use was that it could not be used at night as it made the skin too dark under all but the powerful lights used in film studios. While Max Factor wanted to reserve the product for film use, Frank Factor was open to the commercial possibilities and began developing lighter shades. At

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