Elizabeth Arden cosmetics

Only in the 1970s did Eli Lilly begin to follow the fashion of diversifying through acquisition, but in a different manner from that of Pfizer and closer to that of Merck. In 1971 it purchased Elizabeth Arden Cosmetics, a leader in its field, but did not make any further move into the SIC 284 path. And it entered the high-tech medical equipment field beginning in 1977 with the purchase of IVAC, a maker of thermometers and measuring equipment... 

As the new product lines came on-stream, Lilly s top management decided to sell off its non-healthcare business. Not only were the profit margins lower, but, as one senior executive stressed, they demanded a disproportionate amount of management time. In 1988 Lilly sold its Elizabeth Arden Cosmetics to Faberge for 700 million. The following year its agricultural chemical business was turned over to a joint venture, DowBlcano, in which Lilly held 40 percent of the equity and Dow Chemical the rest (see Chapter 3). By 1991 Eli Lilly had 78 percent of its sales in pharmaceuticals (9... 

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