A/E dually benefits from specialization
For fast-growing architect/engineer Einhorn Yaffee Prescott (EYP), a focus on providing mission-critical services has proven to be a prudent management decision.
EYP's Mission Critical Division, formed only four years ago, generated revenues of $50 million last year — representing about half of the firm's total income. The mission-critical business has been so successful that the Albany, N.Y.-based firm has reorganized as two independent companies: Einhorn Yaffee Prescott, Architecture & Engineering, P.C. (EYPAE) and EYP Mission Critical Facilities Inc. (EYPMC).
Boston-based TA Associates, a private equity firm, invested $57.5 million in EYPMC, representing a stake of two-thirds of half of the company. The deal provides the potential for an additional $20 million investment dependent on the new firm's first-year performance.
"TA Associates brings our firm significant financial and management resources that will allow us to better serve our clients' ever-emerging infrastructure needs," says Steve Einhorn, who is now chairman of both companies. Peter Gross, who has been with EYP since 1997, is chief executive officer of the new firm. Cahal Stephens is the new CEO of the A/E company.
In a separate transaction, EYP's architectural and engineering division was sold to a group of existing shareholders for an undisclosed amount. By enabling the shares of retiring EYP employees to be bought out, EYP's ownership transition plan was significantly accelerated.
Although the reorganization creates separate companies, they will work together on projects that draw upon the expertise of both firms.
Andy Prescott, a founding principal and manager of the firm's Washington, D.C., office, has retired, while Eric Yaffee continues as chief financial officer of the A/E firm.