Counsel to Counsel - May 2008 - (Page 29)

“We’ve raised our profile in the industry,” McGrath says. “We’re not just seen as a competent, safe and reliable in-flight caterer—we’ve added creative flair and a valuable supply chain expertise. We now have the capability of providing a lot of different services that customers may have gone to a number of different suppliers for previously.” Those services extend from designing cups and silverware to picking up the trash at the end of the flight. (See A Full Menu.) But integrating so many businesses seamlessly is no easy trick. It requires tact, sensitivity and a lot of communication. “The cost of acquiring a new entity can be very high if you maintain separate ways of doing business,” Brown relationship … getting to know your client through billable hours is simply inefficient and costly to the client.” Big on Vision partnership at a glance gategroup gategroup was created in 2008 as a new brand to reflect the company’s recent diversification. Gate Gourmet, Inc., the legacy business, is the world’s largest independent provider of airplane catering and logistics. Other gategroup businesses range from supply chain management to product design. Although the company is based in Reston, Va., and Zurich, Switzerland, gategroup’s 20,000 employees are spread across more than 100 locations in 30 countries on six continents. In 2007 the company reported revenues of approximately $2.1 billion. Each integration presents its own set of issues. In the case of Pourshins Ltd., a U.K.-based virtual warehousing and logistics operation, the fundamental challenges included merging the two teams of employees in the United States and understanding Gate’s existing warehousing, distribution and software functions. The process was eased by the fact that the companies had a longstanding business relationship, but working out the details can still be troublesome if you’re not on the same page. “In a smaller business you have one or two main shareholders who dictate what the policies are,” explains Pourshins “ egalisonthefrontlinesofhelping L thebusinesspeoplecapturethevalue oftheacquisitionsbymakingthings asconsistentandseamlesswiththe existingenterpriseaspossible.” Since 2006, Kristin Brown has been general counsel of Gate Gourmet, Inc., a division of gategroup. She was previously an associate at Weil, Gotshal & Manges LLP in Washington, D.C., where her practice focused on complex commercial litigation. Reach her at KBrown@gategourmet.com. Keith McGrath joined the company in 2001 and now heads innovation and culinary excellence for Gate Gourmet in North America. Keith worked previously for British Airways Plc and Mars, Inc. in a variety of business development, key accounts and value chain management roles. Contact Keith at KMcGrath@gategourmet.com. explains. “Legal is on the front lines of helping the businesspeople capture the value of the acquisitions by making things as consistent and seamless with the existing enterprise as possible.” To that end, it can be helpful having an outside counsel who understands the nuance of the company’s strategy. “The reality is that most outside counsel have a hard time getting to know their client’s business intimately,” Hough says. “One of the reasons for that is the billable Managing Director Andrew Langdale. “Then all of a sudden you have policies on lots of things you never even dreamt of before.” What’s more, with just 50 employees, Pourshins didn’t have much excess capacity to allocate to integration issues. Maintaining a high level of customer service while meeting the needs of the new investor meant an intensive workload for a lean and efficient business. But Langdale says Gate Gourmet navigated the obstacles by being hands-on, clear and direct. “They were very big on the vision, on setting the rationale for the deal beforehand,” he recalls. “Throughout the process they communicated strongly why they wanted to do the deal and where they saw the fit. There martindale.com/c2c May 2008 29 http://www.martindale.com/c2c

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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