Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

The E. F. MacDonald Company - Lehman Brothers Collection

The E. F. MacDonald Company

List of Deals

E.F. MacDonald was established in 1922 by Elton F. MacDonald. The company was incorporated in Ohio in 1947, and in May 1961 it was reincorporated in Delaware. The company was engaged in the business of creating and managing incentive programs to increase sales for its clients. These included developing sales objectives for sales personnel.

In 1961 the company expanded its incentive services by entering into the business of licensing and administering the MacDonald Plaid Stamp Plan. The Plaid Stamps that E.F. MacDonald distributed were trading stamps issued to customers at grocery stores, drug stores, dry cleaners, service stations, and other establishments based on their purchases. The largest store chain distributing Plaid Stamps was the Great Atlantic & Pacific Tea Company (A&P). These stamps were redeemable for merchandise at stamp redemption outlets owned by E.F. MacDonald. The Plaid Stamp program proved to be very successful. By 1968 E.F. MacDonald had a network of approximately 675 redemption centers, including approximately 175 Plaidland redemption stores. In the year ending January 28, 1968, the company distributed ten million gift catalogs and issued merchandise for trading stamps that had an estimated retail value of over $72 million.

Besides the Plaid Stamp business, E.F. MacDonald also expanded into other lines of business during the 1960s. In late 1964 the company acquired a controlling interest in Minimax Supermarkets, S.P.A., Italy. In 1965 E.F. MacDonald made several more acquisitions. In February it acquired American Loan & Finance Company for $1.4 million. In July it bought Breck's of Boston, one of the oldest specialty mail-order houses in the country, for $4 million. In September, it purchased a controlling interest in Ball International of Brussels, Belgium, and in November it organized the American Mortgage & Finance Company. In June 1967 it acquired Shopping Bag Food Stores of Los Angeles.

By 1968 E.F. MacDonald achieved sales of $221.8 million, up from $118.2 in 1963 and $53.7 million in 1961.

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