Max Factor - Merger With Norton Simon

Merger With Norton Simon

By the early 1970s Sidney Factor had retired from the board company 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 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 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. (Chanel No. 5 was first.)

It was under Norton Simon that Max Factor launched "Maxi", a line of makeup aimed at 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 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. As of 2011, Procter & Gamble still owns the Max Factor brand.

By the first quarter of 2010, Procter & Gamble had discontinued Max Factor in the United States, instead focusing its marketing efforts on the more successful CoverGirl cosmetics line. Max Factor will continue to be marketed overseas. Max Factor is also exclusively available through Drugstore.com in the United States.