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 partsof 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 oroutside
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 Five Star Real Estate LLC