third party warns clients of dangers - relocation report

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Volume 35, Number 2 February 13, 2012 In This Issue Fixed-Fee Programs on the Rise, Third-Party Company Warns Clients of Dangers . . . . . . . . . . . 2 U.S.-Based Third-Parties Set Up Branch Offices World Wide to Serve Clients, and Solicit Prospects . . . . . . . . . . . . . . . . . . .3 FMC Technologies Readies to Expand, Relocation Program Ready to Roll . . . . . . . . . . . . . . . .4 Global Relocation Trends: Rise in Cross-Border Moves . . . . . . . . . .4 Above and Beyond Generation X—Expats from the Y and Z Generations. . . . . . . . . . . . . . . . .5 Procurement May Step Back When Market Gears Up. . . . . . .5 DOJ Cuts Back Temporary Housing Benefits by Half, Realigns Functions. . . . . . . . . . . . . . . . . . 6 RE/MAX’s Dave Liniger Offers 10 Predictions for Real Estate in 2012 . . . . . . . . . . . . . . . . . . . . . .6 More Women on Boards Could Boost Productivity . . . . . . . . . . .7 Costs, Employees’ Expectations, Emerging Markets Top Challeng- es, Says Cartus Survey . . . . . . . .7 Wheaton Says Purchase of Bekins Places Company as Fourth Largest in U.S. . . . . . . . 8 Who’s Where . . . . . . . . . . . . . . .8 continued on page three American relocation manage- ment companies are increasingly opening up branches in Europe, Asia, the Middle East and Africa (EMEA) to serve the needs of clients in those regions and to solicit new global business (see box on page 3). But few foreign relocation companies have set up offices in the U.S. HCR, a UK-based third-party company, however, appears to be an exception to the rule. The company established a U.S. base of operations in Florida about eight months ago. The company, which refers to itself in its web- site as UK’s largest independent third-party and property-related services group, relocates nearly 10,000 annually. Decision to open up a U.S. branch was announced in a Decem- ber 2010 press release. According to Adrian Leach, HCR’s business development director , the office was launched to ”give outstand- ing support to our North and South American clients and suppliers through a U.S.- based office.” She added that HCR’s “glob- al presence continued to gather pace through our World Connect network of independent Destina- tion Service Providers.” HCR’s World Connect program, she explained, linked together small and medium sized employee relocation providers in over 100 countries with “local knowl- edge.” Since the opening of its U.S. office, HCR has played an ac- tive role in the global relocation industry. HCR partnered with Forum Expatriate Management to launch an “exclusive” global mobility networking chapter in Florida, the company said in a press release. Its first event, scheduled for April 4th, will feature a panel on Short Term Assignment, Extend- ed Business Traveler and Com- muter. Presents are expected to include KPMG, AirInc and three corporate HR professionals. In late February, HCR will UK-Based Relocation Management Company Opens Florida Office

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Page 1: Third Party Warns Clients of Dangers - Relocation Report

Volume 35, Number 2 February 13, 2012

In This IssueFixed-Fee Programs on the Rise, Third-Party Company Warns Clients of Dangers . . . . . . . . . . . 2U.S.-Based Third-Parties Set Up Branch Offices World Wide to Serve Clients, and Solicit Prospects . . . . . . . . . . . . . . . . . . .3FMC Technologies Readies to Expand, Relocation Program Ready to Roll . . . . . . . . . . . . . . . .4Global Relocation Trends: Rise in Cross-Border Moves . . . . . . . . . .4Above and Beyond Generation X—Expats from the Y and Z Generations. . . . . . . . . . . . . . . . .5Procurement May Step Back When Market Gears Up. . . . . . .5DOJ Cuts Back Temporary Housing Benefits by Half, Realigns Functions. . . . . . . . . . . . . . . . . . 6 RE/MAX’s Dave Liniger Offers 10 Predictions for Real Estate in 2012 . . . . . . . . . . . . . . . . . . . . . .6More Women on Boards Could Boost Productivity . . . . . . . . . . .7Costs, Employees’ Expectations, Emerging Markets Top Challeng-es, Says Cartus Survey . . . . . . . .7Wheaton Says Purchase of Bekins Places Company as Fourth Largest in U.S. . . . . . . . 8Who’s Where . . . . . . . . . . . . . . .8

continued on page three

American relocation manage-ment companies are increasingly opening up branches in Europe, Asia, the Middle East and Africa (EMEA) to serve the needs of clients in those regions and to solicit new global business (see box on page 3).

But few foreign relocation companies have set up offices in the U.S.

HCR, a UK-based third-party company, however, appears to be an exception to the rule. The company established a U.S. base of operations in Florida about eight months ago. The company, which refers to itself in its web-site as UK’s largest independent third-party and property-related services group, relocates nearly 10,000 annually.

Decision to open up a U.S. branch was announced in a Decem-ber 2010 press release. According to Adrian Leach, HCR’s business development director , the office was launched to ”give outstand-ing support to our North and South American clients and suppliers through a U.S.- based office.”

She added that HCR’s “glob-al presence continued to gather pace through our World Connect network of independent Destina-tion Service Providers.” HCR’s World Connect program, she explained, linked together small and medium sized employee relocation providers in over 100 countries with “local knowl-edge.”

Since the opening of its U.S. office, HCR has played an ac-tive role in the global relocation industry. HCR partnered with Forum Expatriate Management to launch an “exclusive” global mobility networking chapter in Florida, the company said in a press release.

Its first event, scheduled for April 4th, will feature a panel on Short Term Assignment, Extend-ed Business Traveler and Com-muter. Presents are expected to include KPMG, AirInc and three corporate HR professionals.

In late February, HCR will

UK-Based Relocation Management Company Opens Florida Office

Page 2: Third Party Warns Clients of Dangers - Relocation Report

THE RELOCATION REPORTPage 2 February 13, 2012

continued on page three

A third party provider reports that fixed-fee contract prices are often inflated but says clients that sign up for them will pay almost anything to lessen risk and avoid taking homes into inventory.

A well-run traditional home sale programs provides as much protection for half the price, Mike Canning, broker vice-president of global business development, Xonex, tells Relocation Report.

Fixed-fee relocation pro-grams are increasingly popping up in conversation as reloca-tion experts consider relocation policies best suited toward the current market.

“Such programs may become popular again for the near term,” said Canning, “as people look at numbers from last year and say ‘We spent a lot of money on inventory cost and other things involved with the home, maybe we should look at (fixed-fee pro-grams) to protect ourselves.”

But do such programs re-ally guarantee cost containment? Fixed fee programs promise overall savings, lower risk and budgeting predictability, ex-plained Canning. But fixed-fee programs are only worth it if the fee is less than the closing and carrying costs of the home.

That’s rarely the case, Can-ning said. “Most of the compa-nies selling fixed fee relocation programs are betting against this outcome,” he wrote in a Febru-ary 12, 2012, blog. “Savings

are based on arbitrary, and often times exaggerated, estimate of costs as a percentage of the home sale price.”

While an aggressive market-ing plan and direct cost program might average less than 8 percent for a BVO and 11 percent across guaranteed programs, he contin-ued, he has seen the basis for the fixed fee program average nearly double that amount.Xonex Audits Fixed-Fee Program Costs

Canning told Relocation Report that he got a call from a company which wanted to switch providers but didn’t understand the difference between di-rect expenses verses fixed-fee programs. The company asked Canning to review several moves, and gave him charts of relocating em-ployees’ closing statements and fees.

“They (com-pany) gave us three examples,” he said. “We went through each one line –by-line,” he said, “and asked ourselves if we move this person from here to here, into a 4-bedroom

home, two cars, four kids, and the home is valued at this amount…what should be the fee?

“To get quotes from title fees and attorney fees we went to our providers,” he explained. “We asked them, ‘What would you charge for closing? We wanted hard numbers…The numbers worked dramatically differently,” and results “alarming.”

The company’s third-party collected more than double of what Canning’s company would have collected under a regular transaction (See chart below).

Fixed-Fee Programs on the Rise, Third-Party Company Warns Clients of Dangers

*Numbers have been changed to protect the innocent. Same pricing scale applied.

(Chart Excerpted from January 12, 2012, blog post)

Page 3: Third Party Warns Clients of Dangers - Relocation Report

THE RELOCATION REPORT Page 3February 13, 2012

continued from page one

UK-Company HCR

The Relocation Report is published twice each month by Federal News Services, Inc.

Publisher and Circulation:The Federal News Services, Inc., a division of PaperClip Communications, 125 Paterson Ave., Suite 4 Litle Falls, NJ 07424 Telephone (973) 256-1333 Fax (973) 256-8088 www.relocationreport.com

Editor:Marcela Kogan2810 Blaine DriveChevy Chase, MD 20815Telephone (301) 318-7397Fax (301) 587-9056Email: [email protected]

Designer:Katherine BitgoodEmail: [email protected]

© Copyright 2012. ISSN 0275-7613Published 22 times each year at an annual subscription rate of $257.Photocopy of or electronic re- production of this newsletter in whole or in part is prohibited without written permission from the publisher.

be represented at the South West USA Totally Expat Show in Hous-ton, widely attended by global mo-bility professionals from the west coast. HCR said that Houston is in “prime oil and gas country, and the USA’s second biggest center for Global Mobility.”

HCR was also invited to join Worldwide ERC Global Mo-bility Specialist Certification Review Board, will helps pro-vide guidance for the organiza-tion’s Global Mobility Specialist program.

U.S.-Based Third-Parties Set up Branch Offices World Wide To Serve Clients,

and Solicit Prospects • 6 offices in Asia/Pacific (Singapore, Bangalore, Beijing, Chengdu,

Hong Kong, Shanghai)

• 7 offices in UK/Europe (Swindon, Amsterdam, Geneva, London, Munich, Paris, Zurich)

• 9 offices in the Americas (Danbury, Chicago, Irving, Los Angeles, Memphis, Minneapolis, Montreal, Omaha, Sacramento)

SIRVA:

• 7 offices in the U.S. (Chicago, Cleveland, Ft. Wayne, Minneapolis, New York, San Jose, St Louis)

• 2 offices in Canada (Edmonton, Toronto)

• 10 offices in Asia Pacific/Middle East (Auckland, Beijing, Dubai , Hong Kong, Kuala Lumpure, Melbourne, Perth, Singapore, Shanghai, Tokyo)

• 3 offices in in Europe (Prague, Swindon, Chorley)

Weichert:

• 4 U.S. offices (Morris Plains, Boston, Chicago and Houston)

• An office in Toronto, Hong Kong, London and Calgary

The company charged its client $146,612.50 in fixed-fees on a $920,000 home sale. Under a traditional relocation program Xonex would have charged about $68,573.50, less than half the rate.

Canning said that during the reviews Xonex also found a pecu-liar fee structure in which one fee was charged prior to a home having to go into inventory, but increased if the home failed to sell by the takeover date. Under such circum-stances, Canning said, what’s the incentive of selling the home?

He added that clients who trust their fixed-fee provider will be in for a shock when the market improves and they realize how much they’ve been charged. “People (clients) will look at this and say, ‘We were raked over the coal with these charges. What makes the relationship (between a third-party and client) work is that there is a connection, trust. Vendors see you as an extension of them.

“If you are at every turn mak-ing money on their hardships,” he said, “you will not be likely to remain their partner.”

continued from page two

Fixed-Fee Programs on the Rise

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THE RELOCATION REPORTPage 4 February 13, 2012

FMC Technologies is expand-ing its workforce despite the eco-nomic downturn and its executives are confident that the company’s relocation program will adequately meet the needs of relocating trans-ferees and new hires.

The company is in good shape, said Jack Clarke, director of global mobility services, because reloca-tion policy changes were put in place prior to the economic down-turn. FMC runs a “hybrid” reloca-tion program, managed in-house with the help of service providers. FMC uses Cartus and Weichert to provide relocation services, Parsifal to conduct audits, and American Escrow to do closings.

FMC also works with nearly 10 moving compa-nies—up from 3—which submit bids on moves posted through the com-pany’s Move Metric system. “Every day we get calls from someone trying to sell their services,” he said. “We say, ‘if you want to work with us, and if the quality is high” submit a bid. Relocation Policies Reflect Forward Thinking

Relocation policies put in place anticipating changes in the economy served the company well. Clarke said FMC offered employees incentives to sell their home as far back as 1980s. “The highest incentive in the business

was ours,” he said, “6 percent of market value. Everyone thought we were crazy, but we wanted to keep homes out of inventory and didn’t want employee to dilly dally if they had an offer near the appraised value.”

The company also increased marketing days from 90 to 120 and expanded its tiered program. Tier 1, 2, and 3, included home buying benefits and was geared toward key managers and executives. Tier 4 was targeted toward renters and Tier 5 toward new hires.

FMC’s policies also helped lift the morale of some employees who couldn’t sell their home despite best

Global Relocation Trends: Rise in Cross-Border Moves The rise in cross-border moves are resulting in more permanent and self-

initiated relocations, said Natascha Clark, HCR vice-president, business devel-opment, in a January 18, 2012, article posted in the company’s website.

“I’m also anticipating an increase of assignments and cross border moves within Asia, South America and the Middle East,” she said.

Which industry is moving where? Clark identified trends across industry sectors.• IT and Technology: More companies are moving people from East to West• Building & Construction: The number of assignments to Africa, Middle

East and remote Asia are on the rise. • Automotive: Cross-border and regional moves within Europe are increasing. • Finance: The growth of extended business travelers continues. Future Expat Locations

Clark reports that the next eleven countries identified by Goldman Sachs as having a high potential of becoming the world largest economies in the 21st century next to Brazil, Russia, India and China (BRICs) include: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam. “These emerging countries (especially the African states) are quickly becoming future expat locations,” Clark said.

FMC Technologies Readies to Expand, Relocation Program Ready to Roll

efforts. “We have a policy where we pay up to $50,000 in losses to try to keep the transferee reason-ably whole,” he explained. “We have situations where the employee is severely under water with their mortgage. We address those on a case by case basis.”

Clarke said the company “is only obligated to make up the dif-ference between what employees purchased house for and the price forced to sell at.” Luckily, he said, the company moves “lots” of em-ployees from south western states where the market drop was not as severe. Plus, their homes were not as expensive.

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THE RELOCATION REPORT Page 5February 13, 2012

Who are the expats of the fu-ture? Natascha Clark, HCR vice-president, business development, describes the difference between the Y and Z generations in a Janu-ary 18, 2012, article posted in the company’s website.

Generation Y expats are more likely to “jump in to any assign-ments opportunity,” she said, “without considering consequenc-es to their career, and they tend to be less demanding about reloca-tion benefits than the seasoned expat.”

Clark said that typical Genera-tion Y expat benefit packets may not include, for instance, COLA, cross culture training or home leave, and they are willing to accept a Local Plus package. The growth of “con-tract” based employees will become more common.

remain two major trends in the global mobility industry,” she explained. “Will Generation Z choose to employ skilled nation-als in the growth destination, or will they move their talent to ensure absolute continuity and further career progression?”

Although those comprising the Generation Z will be tech-nologically savvy, they will also have learned from their parents how to survive difficult eco-nomic times. As such, they’ll be more likely to value education, hard work and family life than the Traditional and Baby Boom-ers before them.

Future expats, she added, will live in a world where more em-phasis will be placed on cultural awareness so “they’ll learn from others in a destination location.”

Above and Beyond Generation X—Expats from the Y and Z Generations

Procurement May Step Back When Market Gears UpProcurement executives still

don’t understand why relocation costs are so high despite the indus-try’s educational efforts, but their role in the selection process is ex-pected to diminish as the economy improves, speculates an industry source.

By that time, he said, compa-nies will acknowledge that rising relocation expenses were caused by the weak real estate market not vendors’ fees.

Some corporate clients ques-tion the worth of procurement’s participation in the process.

Very little is known about Generation Z—those born between 1995-2010—because they haven’t entered the workforce, she ex-plained. But the differences may be “starker” than ever, she said.

“Generation Z will be a ma-terialistic generation,” she added, “and those that become expatri-ates will expect to bridge the gap between home and host with the greatest of ease. In the next de-cade, Generation Z will comprise 10% of our workforce and they will be entering the workforce in an era of declining supply i.e. there will be more people exiting the workforce than entering it.”

But Generation Z may also “suffer more shortfalls than anticipated” because the future of global relocation is uncertain. “Cost saving and talent retention

“Procurement isn’t adding any value,” said the source. “We have to determine a number of (factors) that as not as tangible as price. I think the trend is going to be away from procurement much to the relief of everyone.”

The source reports that in some companies procurement has little influence in the vendor selection process.

Procurement managers, which still complain about the rising relocation costs, don’t realize that vendors’ fees represent a

tiny amount of overall reloca-tion expenses. The source said: “If companies are spending, say, $10 million in relocation, about 5 percent of that goes toward service fees, that’s about $500,000.

“You are not going to make much of a dent in the $10 million by beating somebody down by $300 a move on service fees,” he added.

“They (procurement) still have the attitude,” the source added, “‘it’s only moving people, how hard can that be?’”

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THE RELOCATION REPORTPage 6 February 13, 2012

RE/MAX’s Dave Liniger Offers 10 Predictions for Real Estate in 2012

Dave Liniger, chairman and co-founder of RE/MAX, sees sev-eral positive factors that could take hold in 2012.

“Interest rates will remain at or near historic lows and home pric-es will stabilize and start to rise by the end of the year,” said Liniger “There’s no question, the housing recovery will be slow and steady, but for many cities the turn-around is already happening.”

With interest rates lower than most people have ever seen, and prices lower than they’ve been in years, the current marketplace has cre-ated a unique environment that may not be repeated for decades, he said.

“Informed and savvy consumers and investors recognize there’s great opportunity in this market and they are leading the way to recovery,” Liniger added. The top 10 predictions are: 1. Continued low interest rates 2. Home prices stabilizing and starting to rise 3. Increasing numbers of home sales 4. Rising inventories, mostly due to increased foreclosures 5. Distressed properties will make up about half of all sales 6. An improved Short Sale process to help avoid foreclosure 7. Homeownership rates continue to fall 8. Foreign and domestic investors will buy 25% of homes 9. Increasing reliance on real estate agents 10. Increased use of Mobile and Social technologies

The Department of Justice (DOJ) said it will reimburse re-locating employees for 60 day of temporary quarters expenses, half as many as it had in the past. These cuts will save the agency nearly $10.3 million a year.

Reducing relocation benefits is part of larger cost-cutting measures DOJ is undertaking to streamline operations, according to an agen-cy’s press release. DOJ expects to save another $130 million by realigning functions, reassigning employees to different divisions and consolidate offices.

The agency also proposes to do the following: • Eliminate the Drug Enforcement

Administration’s (DEA) Mobile Enforcement Teams and reas-sign the 145 positions associated with the teams to fill vacancies with the DEA fee-funded Diver-sion Control Program to better support DEA’s mission. Sav-ings: Up to $39 million.

• Consolidate Antitrust Division field office space in Atlanta, Cleveland, Dallas, and Phila-delphia into the Chicago, New York and San Francisco field of-fices as well Washington D.C.’s division. Ninety-four positions will be reassigned to provide additional staffing resources to larger investigations. Savings: $8 million.

• Merge the Justice Management Division’s strategic planning and management functions to increase efficiency and effec-tiveness. Savings: $1.3 million.

• Consolidate sub-regional office locations to better use existing workspace and enhance infor-mation sharing. Changes to specific agencies

include the following:• FBI: Twelve sub-regional of-

fices will be reduced or consoli-dated resulting in a $674,000 savings.

• DEA: Up to seven sub-regional offices will be consolidated resulting in $395,000 savings.

DOJ Cuts Back Temporary Housing Benefits by Half, Realigns Functions

• U.S. Marshals Service: Sub-regional office space will be reduced or consolidated result-ing in a $381,000 savings.

• Bureau of Alcohol, Tobacco, Firearms, and Explosives: Five sub-regional offices will be consolidated resulting in a $292,000 savings.

• U.S. Attorneys: Field office space will be reduced and consolidated resulting in a $200,000 savings.

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THE RELOCATION REPORT Page 7February 13, 2012

Costs, Employees’ Expectations, Emerging Markets Top Challenges,

Says Cartus SurveyCompany costs, employees’ changing expecta-

tions and emerging markets represent the three most significant challenges international corporate reloca-tion managers face today, according to Biggest Relo-cation Challenges: International Assignments, a recent Cartus survey on international mobility.

Nearly 68 percent of respondents reported con-cerns about international assignments costs, the report pointed out. One-third of them have instituted formal cost estimation and budgeting procedures on trans-ferees, and 21 percent aligned relocation benefits to more closely match employees’ levels within the organization (tiered services).

Nearly 45 percent expressed worry about em-ployee expectations and attitudes, “an issue that un-derscores the difficulties companies are having with identifying capable and willing candidates for assign-ments,” the survey pointed out.

“Traditional benefit-laden expatriate packages are less common now because the focus on costs is making companies more savvy,” said John Arcario, executive vice president at Cartus. “Many companies are offering global assignees very targeted benefits packages. At the same time, employee demands are increasing, but they appear to vary by generation.”

Arcario pointed out that “Generation Y” or “Millen-nial” assignees are comfortable “negotiating” assignment benefits since they have few family obligations. But more qualified seasoned employees job struggle with balancing career advancement with family obligation.

Companies entering into emerging markets will face other challenges as well, including attracting skilled candidates for international assignments and ensure employees adapt to the new area both professionally and personally.

Employee expectations, the study concludes, will likely continue to weigh heavily in international reloca-tions “as companies balance talent management against an expanding global footprint,” Arcario said. He added that talent management is key to a company’s success, and companies should invest in “new initiative to moti-vate, engage, and support their workforce.”

Low representation of women in top jobs is un-dermining Britain’s economic recovery, U.K. Prime Minister David Cameron said at the Northern Future Forum meeting, according to a February 9, 2012, article features in People Management (PM).

Cameron explained there was evidence that promot-ing more women to senior roles would boost business performance and that the UK could learn lessons from countries like Norway, which impose boardroom gender quotas, according to the article.

“The evidence is that there is a positive link be-tween women in leadership and business performance, so if we fail to unlock the potential of women in the labor market, we’re not only failing those individuals, we’re failing our whole economy,” Cameron told PM.

The U.K already helps women set up and run their own business. But the Nordic and Baltic countries are way ahead of Europe in ensuring women are repre-sented in boards.

Under Norwegian law, women must make up at least 40 per cent of the board, while similar quota laws have been passed in Spain and Iceland, the ar-ticle pointed out.

In February 2011, attempts were made to increase women on boards by at least 25 percent, but the mea-sure was not mandatory. Cameron said employers must be pressured to promote and recruit women into leadership posts.

According to the article, Martin Webster, head of corporate governance at law firm Pinsent Masons, ar-gued that, “Improvements have been made in the last year in the number of women on boards, but most are non-executive roles, and often it is the same women on multiple appointments.

More Women on Boards Could Boost

Productivity

We’d love to hear from you!Contact our editor, Marcy Kogan, at

[email protected] with comments, questions and suggestions.

Page 8: Third Party Warns Clients of Dangers - Relocation Report

THE RELOCATION REPORTPage 8 February 13, 2012

Who’s Where?

Carolyne Hotze, regional director at Long & Foster, is no longer with the company.

Lisa Hulet joins SIRVA in Canada as vice-president of reloca-tion sales. She was previously a vice-president of marketing for United Van Lines Canada and vice president of business develop-ment at Prudential.

Denise Mitchell, now account manager at Prudential, is no longer with SIRVA, where she served as vice-president of client services. She also worked for Graebel in business devel-opment, and for Mobility Services International as director, client services.

Tom Paton joined NEI as proposal writer. He was previously with Prudential and MSI.

David Dance left Suddath International, where he serviced as vice president, finance & strategic development, and joined Para-mount Transportation as president. He also worked at Cartus, as director of global supplier relations.

Tiffany Johnston joined Weichert Relocation Resources as vice president of client services, headquartered in the third-party’s Chicago office. Johnson most recently served as presi-dent of National Rental Service. Lisa Prather joined Weichert as vice president of operations, working from the third-party’s office in Houston. Prather served as vice president at Corporate Relocation.

Elizabeth Stewart joins Altair Global Relocation as vice president, client services. She will work out of the Atlanta Region Service Center in Shelton, Connecticut and report to Katherine Couture, senior vice president for the Atlantic Region.

Wheaton Says Purchase of Bekins Places Company as Fourth Largest in U.S.

Wheaton Van Lines purchased Bekins Van Line, creating the fourth largest household goods carrier in the U.S., according to a press release issued by Wheaton.

The asset purchase agreement is in process and the transition of ownership is expected to be com-plete by mid- March 2012.

The press release added that when the acquisition is final, both brands – Wheaton World Wide Moving and Bekins Van Lines – will continue to be operated as separate brands with combined operational efficiencies.

The new Bekins will be head-quartered in Indianapolis, also the corporate headquarters of Wheaton. Together, the brands will increase the van line’s agency base from 240 agents across the country to approximately 370 nationwide, ac-cording to Wheaton.

The acquisition, Wheaton said, is designed to bolster both brands and bring increased operational capabilities to bear for the com-bined company’s entire client base – including private individuals and corporate clients.

Nearly 38 employees will be added to Wheaton’s corporate staff in Indianapolis bringing the total number of corporate employees to about 175. Bekins offices in Hill-side, Ill. will be shut down.

“It’s rare to have an opportunity to acquire a brand like Bekins, a company that truly helped to create the moving and storage industry, an innovator in that space and brand

that’s so well recognized,” said Mark Kirschner, CEO of Wheaton Van Lines. “Consolidation in the re-location industry is inevitable as the market shrinks with the economy.

“But,” the company continues,

“acquiring the Bekins brand and becoming partner to 130 Bekins agents will allow the van line to grow its market share overall and put us in an even better position to compete moving forward.”