On June 6,[’01] A/E giant Einhorn Yaffee Prescott announced that it would split into two distinct and independent companies: Einhorn Yaffee Prescott, Architecture & Engineering, P.C. (EYPAE) and EYP Mission Critical Facilities® Inc. (EYPMC).

On June 6,[’01] A/E giant Einhorn Yaffee Prescott announced that it would split into two distinct and independent companies: Einhorn Yaffee Prescott, Architecture & Engineering, P.C. (EYPAE) and EYP Mission Critical Facilities® Inc. (EYPMC).

The move comes two years after the firm organized into two separate operating divisions. EYPAE, founded in 1972, is a national leader in both the design and the preservation of educational, cultural, and governmental facilities. EYPMC—which at four years old represents about half of EYP’s revenues—is the leading service provider for corporate financial, telecommunications, and computer/Internet mission critical facilities. This past year, the combined revenues of the firm grew from $70 million to $100 million; the staff numbers 700 people.

Steve Einhorn is now the Chairman of the Board of both companies. “Significant changes in the marketplace have placed very different demands on EYP’s A/E and MC divisions. In response to this, we have reorganized the firm in order to facilitate internal growth, an even higher level of client responsiveness and a greater level of focus with regard to our respective areas of expertise,” said Einhorn.

Today’s announcement includes significant developments at each company. TA Associates, one of the nation’s leading private equity firms, invested $57.5 million dollars in EYPMC. The deal also includes the potential for an additional $20M dependent upon the new firm’s performance after its first year. “TA Associates brings our firm significant financial and management resources that will allow us to better serve our clients’ ever-emerging infrastructure needs and to maintain EY’s leadership position, both nationally and internationally, in the design and maintenance of mission critical facilities. Based upon TA’s focus and commitment to leading technology outsourcing providers, we believe we could not have selected a better partner,” said Einhorn, Chairman and President of EYPMC. Peter Gross will serve as the CEO and Chief Technology Officer.

In a separate transaction, the Architectural and Engineering division was sold to a group of existing shareholders. Simultaneously, EYPAE announced new leadership, significantly accelerating their ownership transition plan. Cahal Stephens is the new President and CEO. Steve Einhorn stepped down as CEO; he will continue as Chairman. Eric Yaffee remains CFO. Other members of the A/E leadership team include Tom Birdsey, Ed Kohlberg, Lou Bonelli, Steven Biegel, and Andy Wong. In addition, Charles Kirby, Ralph Gifford, and Marie Ennis have been elected to the Board of Directors. Founding principal and managing director of the firm’s Washington, DC office Andy Prescott has retired, as has Principal David Haffler, whose Washington, DC firm, Kimnitzer Reid & Haffler, EYP acquired in the ‘80s.

Although the reorganization creates two separate, independent companies, they will continue to work together on projects that draw upon the expertise of both. Examples include the new NASDAQ facility in Times Square, NY, a campus-wide data center for Harvard University in Cambridge, MA, the new McCormick Tribune Foundation Center for broadcast and alternative-media journalism at Northwestern University, in Evanston, IL, the new Satellite and Operations Facility for the National Oceanic and Atmospheric Administration in Suitland, MD, and a new public broadcast center for WMHT at the Rensselaer Technology Park.

A/E Company. In the last decade, EYPAE has grown from 150 employees to over 450, located in offices in Albany and New York, NY, Boston, MA, and Washington, DC. This dramatic growth has occurred while the firm’s headquarters and largest office has remained in Albany, the hometown of Einhorn and Yaffee.

According to new CEO Stephens, EYPAE will continue to focus on its core strengths: the design and the preservation of facilities for educational, cultural, and governmental institutions. “The creation of two distinct companies strengthens both by allowing each to concentrate on its core strengths. Our unique design approach that integrates architecture, engineering, and technology allows us to design exciting buildings that respond to human, technological and community needs.”

Mission Critical Company. EYPMC’s rapid growth over the last four years has made it the leading company protecting critical business data, communications, and power systems from failure. The company’s 250 employees will continue to provide mission critical services out of its offices in Los Angeles and San Francisco, CA; New York, Albany, White Plains, and Middletown, NY; London, England; Washington, DC and Boston, MA. Discussions are underway to open new offices in Hong Kong and Singapore this year. EYPMC is one of the leaders in the design and upgrade of existing and new technically sophisticated, mission critical facilities that must remain in operation 7x24x365. Their projects range from corporate data centers to web hosting/co-location facilities, to point of presence sites (POPs), trading floors, digital switch installations, network operations centers (NOCs), call centers, and broadcasting studios.

TA Associates was founded in 1968 and is one of the nation’s leading private equity firms investing in growing companies. Through its offices in Boston, Menlo Park and Pittsburgh, the firm has over $5 billion in capital available to support growth, finance acquisitions, fund share repurchases and assist management buyouts. TA has invested in more than 320 companies.

“We are very excited to become an investor in EYP Mission Critical. The management team has done a tremendous job of rapidly growing the business and establishing themselves as the leading engineering and maintenance services provider in the critical facilities industry. We believe EYP is strategically positioned to take advantage of the significant demand for high reliability facilities given the uncertain outlook for power quality and availability,” said Michael Wilson, a Principal of TA Associates who will join EYPMC’s Board of Directors.