After Turning Down $400 Million, Grady-White Owner Transfers Company to Perpetual Trust and Nonprofit
- BoatBlurb Contributor
- Jul 30
- 4 min read
In a unique move that could become a landmark succession model for the boating industry, Grady-White Boats has transferred ownership of the company into a perpetual purpose trust and an affiliated nonprofit organization, ensuring the company can never be sold while directing its future profits toward charitable causes.
The new structure will see owner Eddie Smith transfer control of the Greenville, North Carolina-based boatbuilder to the newly created Grady-White Boats Perpetual Purpose Trust. An affiliated 501(c)(4) nonprofit organization will receive the company's non-voting shares and distribute profits not reinvested in the business to support education, healthcare, conservation, and community initiatives. The structure is the first of its kind in the recreational marine industry and the largest ownership transition of its kind in the United States since Patagonia adopted a similar model in 2022.
For Grady-White, the announcement marks the latest chapter in a company that has helped shape modern recreational boating for more than six decades.
Founded in 1959 by Glenn Grady and Don White, Grady-White quickly developed a sterling reputation for building rugged, family-friendly saltwater fishing boats. After a brief period of financial tumult, Eddie Smith purchased the company in 1968 at just 26 years old and built the brand into one of the industry's leading examples of quality, craftsmanship, and leadership. Over the ensuing 58 years, Smith transformed the business into one of North America's most respected boat manufacturers, known for innovations like its exclusive SeaV² hull, multiple patented designs, countless customer satisfaction awards, and an influence that has helped to define the modern dayboating market.
In the company's announcement, Smith says he chose the trust structure despite receiving acquisition offers exceeding $400 million over the past two years. Smith said preserving Grady-White's culture was his priority.
"Relationships—with employees, customers, and dealers—have been key to Grady-White's success," Smith said in the company's statement. "It's a core belief of mine that if you're successful, you really should share that success with your people, who helped you be successful. I had to try to figure out how we transition to the future and take care of our team while retaining the soul of this business."
In a video posted along with the announcement, Smith described how a period of deep family struggle five years ago forced him to explore a new plan for the future of the business. Smith's wife Jo Allison, 77, passed away in February 2020. Smith's son Chris, 57, died from amyotrophic lateral sclerosis (ALS) a year later in May 2021. Smith has five grandchildren.
"I've come to a time in my life where I have to start thinking about the long-term future of Grady-White. Until my son passed away from ALS, I thought that it probably would go on for at least one more generation. But that evidently was not the plan," said Smith. "Many of my friends in the boating industry have sold their companies, and none of them are happy about what happened to them after the sale. Their companies just lost their way. They lost their soul. And I certainly did not want to see that happen to Grady-White. I would want all future leaders to always stay true to the brand, to follow the values and principles that are the very foundation of Grady-White, and that have indeed carried us forward all these years to where we are today."
Under the new structure, the perpetual purpose trust will permanently oversee the company's governance and ensure the business continues operating according to the principles established by Smith. The nonprofit organization will receive company profits that are not reinvested in Grady-White, with that funding being directed toward charitable causes chosen by the leadership team.
"Instead of selling the company, I'm actually giving ownership as well as control of it away to the perpetual purpose trust and a nonprofit. The very main points that the purpose trust will be obligated to continue to protect, are all the interests of our people, our associates here at Grady-White, our customers, our dealers, and our community," said Smith.
The company emphasized that day-to-day operations will not change. President and CEO Kris Carroll said the existing executive leadership team will continue leading Grady-White, while Smith will become CEO emeritus, serving as an advisor and brand ambassador.
"As a company built on strong principles and dedication to our incredible team, we are deeply grateful for Eddie's leadership, stewardship and commitment to the future of Grady-White Boats," said Carroll. "As we enter this new chapter, our team takes great pride in knowing Grady-White and its people-first culture and community support will continue to thrive for many, many decades to come."
As part of the ownership transition, Grady-White also announced that all current employees will receive bonuses totaling millions of dollars. More than 350 employees attended the company's announcement in Greenville, where Smith unveiled the new ownership structure and thanked employees for helping to build the brand to what it is today. Bonus amounts for employees were based on years of service and craftsmanship level.
The company also said the new arrangement will permanently protect the values that have defined Grady-White for decades, including employee profit sharing, customer satisfaction, dealer relationships, and community involvement.
Natalie Reitman-White of Purpose Owned, which advised Grady-White on the transition, said the move demonstrates how purpose trusts are made to preserve privately owned businesses while supporting charitable giving.
"The transition of Grady-White Boats to a perpetual purpose trust shows that this model is being embraced by all types of companies to protect what they've built and what matters most to them," Reitman-White said.
You can watch the video describing the ownership changes below:
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