Counsel to Counsel - May 2008 - (Page 28)

profiles in partnership Diversification at the Gate By Steven Andersen Photography by Stanley Leary N ext time you’re at the airport, take a minute to look out the window. Notice the operational complexity—the number of integrated functions that must act in concert to get your flight off the ground. Chances are a number of the people you see scurrying around are affiliated with gategroup. Until recently, gategroup was just Gate Gourmet, Inc., an airline caterer. But over the last year the company has undergone a transformation, aggressively acquiring companies throughout the air travel sector and rebranding itself as a highly diversified service provider. “The challenge is quickly understanding each new business, how it works and how it relates to what gategroup now offers,” says Kristin Brown, Gate Gourmet’s general counsel. “It’s an ongoing process. The only way to figure it all out is on the job.” In an industry with a lot of moving parts and little margin for error, that’s a real challenge. But Gate’s legal function is not alone. Among the many outside counsel and resources it relies on is one with a deep familiarity with the company. Powell Goldstein LLP Partner Andrew Hough, after all, is a former Gate Gourmet general counsel. “The success or failure of any acquisition hinges on your ability to quickly integrate that company’s employees, products and services,” he says. “The fact that I was there for three years means they don’t have to get me up to speed on the business or what drives their success.” From left, Kristin Brown and Keith McGrath, Gate Gourmet, Inc.; Andrew Hough, Powell Goldstein LLP Rapid Integration It’s hard to think of an industry that is more tumultuous than civil aviation. Fraught with labor squabbles, insolvency and, in recent years, heavy security concerns, the air industry sometimes seems to lumber from one crisis to the next. “We’re all used to working in an industry that constantly throws up challenges,” says Keith McGrath, vice president of innovation and culinary excellence for Gate Gourmet North America. But if turbulence is the norm, 2007 offered a brief window of calm. Investment in the sector was up and major carriers Delta Air Lines, Inc. and Northwest Airlines Corp. emerged from Chapter 11. Instead of taking a breather, Gate Gourmet’s management took the respite as an opportunity to diversify dramatically. As airlines have struggled to reduce costs, most have curtailed in-flight food service. With traditional service models shifting, Gate Gourmet wanted to offer clients what McGrath calls a full menu of options, from refined first-class service, to inexpensive, shelf-stable servings. The fastest way to expand its capabilities was through targeted acquisitions. In a little over a year, the company has acquired eight businesses. The gategroup umbrella brand debuted at the industry trade show in February, creating significant buzz. 28 LexisNexis® Martindale-Hubbell®

Table of Contents Feed for the Digital Edition of Counsel to Counsel - May 2008

Counsel to Counsel - May 2008 Contents Harassment Policies NEC Corporation of America and Duane Morris LLP Lost or Stolen Data: Minimizing Fallout On-Boarding the Board Drafting Fair, Efficient and Enforceable Arbitration Agreements Responding to Counterfeit Products Crafting an English-Only Workplace Policy Distressed Debt: New Players, Global Sophistication Make Restructuring More Complex IP Confidential: Plan Ahead, Act Fast to Protect Your Trade Secrets Adverse Changes: Think Ahead in a Strained M&A Market Optimizing Web 2.0 Technology: Expanding Your Professional Network Union Pacific Railroad Company and Patton Boggs LLP Warming Warning: Develop Your Climate Change Strategy Now Risk Sharing: Expect New Obstacles and Expenses in Syndicated Loans E-Discovery in Action Diversification at the Gate Energy

Counsel to Counsel - May 2008

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