Typically this story goes in the other direction. The large corporation buys out
a locally successful business and relocates the core to their home offices,
sooner or later. Here in West Michigan we have seen this happen frequently to
some of our large local companies. Many long time employees lose their jobs,
must scramble to find a comparative position or relocate. That is why this
is so newsworthy! We are encouraged for the local area by this one reversal....
Do you think they have read " Small is Beautiful " by E.F. Schumacher?
Transnation Title Agency Press Release:
National Company Goes Local
LandAmerica Financial Group (NYSE LFG) announced on July 1, 2008 that it has
sold its twelve West Michigan Transnation Title Insurance operations to a group
of its senior Michigan executives and key Western Michigan employees.
The purchaser, OFTA, LLC, has formed several title agencies and will be commonly
known as Transnation Title Agency of Michigan. The agency has entered into a
long term exclusive contract with LandAmerica and will issue title insurance
policies through LandAmerica's two primary underwriters, Lawyers Title
Insurance Company and Commonwealth Land Title Insurance Company.
The terms of the transaction were not disclosed.
Transnation Title Agency of Michigan is led by Monte Reinert who most recently
served as the Michigan Manager for LandAmerica's title operations. Joining
Reinert on the executive team will be title industry veterans Tom Olson, Tom
Host, Sharlene Shineldecker, Steve Barnum, William VanHulle, Ed Tuma,
and Gary Opper.
Reinert indicated that this transaction was quite unique within the title industry
in the sense that a major underwriter had agreed to sell what is considered by
many to be its jewel operation in the Midwest. "We were successful in demonstrating
to LandAmerica that by selling the operations to us, we could actually help
LandAmerica increase its market share and operating margins which, over the
past few years, have become the overriding focus of all the national title insurance
companies. That focus has resulted in strategies aimed at reducing costs through
standardization of processes and centralization. Centralization simply means that
large segments of our day to day work is relocated to work centers in other parts
of the country. That strategy goes against our group's belief that superior service
can best be achieved through the efforts of highly trained and dedicated people
that customers know and can interact with on a local basis."
Transnation executive Tom Olson stated that as unique as it was for LandAmerica to
sell a prime title operation, it is even more unique that the agency will be wholly
owned by a large number of its 75 employees rather than just a few individuals or
outside investors. "It is exciting for me that so many employees were able to become
direct owners of this venture. We believe that our ownership structure will empower
employees at the local level to make decisions, solve problems, and take whatever
action necessary to get the job done for our customers."
Reinert further stated that Transnation was instrumental in negotiating with
LandAmerica to keep the Zeeland title production center from being closed and
relocated to Twinsburg. Ohio. This not only prevented most of the positions associated
with the Zeeland location from being eliminated, it allows for Transnation to keep the
preparation of its title products in the hands of local experts familiar with the title
intricacies of West Michigan.
Transnation will be a full service title operation offering title insurance and related title products
for both residential and commercial transactions, transaction management, escrow and closing
services, mobile and bi-lingual closings, 1031 Exchanges, customer marketing materials, builder
services, and customer information services.
Copyright 2008 ~ All rights reserved ~Terry Westbrook
Westbrook Realty
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