Eddie Smith could have sold Grady-White Boats for more than $400 million. Instead, the 83-year-old owner gave the company away, handing control of the Greenville, North Carolina boat builder to a nonprofit trust that locks in employee profit-sharing, dealer relationships, and charitable giving for good.
Why Smith Walked Away From $400 Million
Smith bought Grady-White in 1968, at age 26, when the company was on the brink of bankruptcy, and built it into one of the most decorated builders in the marine industry. Two years ago, offers started coming in to buy the company outright. Smith turned them down. As he put it in Grady-White’s announcement, “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.”
Rather than cash out, Smith modeled his exit on Patagonia founder Yvon Chouinard, who transferred ownership of his outdoor apparel company to a trust and nonprofit in 2022 so that all future profits would go toward environmental causes rather than a sale. Purpose trusts like this remain rare — only 81 U.S. companies have made the switch, up from just seven in 2018 — but Grady-White is the first in the marine industry to do it.
How the New Ownership Structure Works
Grady-White’s voting stock now sits with the newly formed Grady-White Boats Perpetual Purpose Trust, while the company’s non-voting shares move to a not-yet-named 501(c)(4) nonprofit. Both the trust and the nonprofit will be run by independent boards that don’t include Smith. The nonprofit is expected to distribute tens of millions of dollars a year to conservation, healthcare, education, and community causes. Smith is giving up any personal claim to profits from a future sale of the company, along with any tax benefit for donating his stock.
Day-to-day, not much changes on the shop floor. CEO and President Kris Carroll, a 50-year Grady-White veteran, stays in charge, and Smith shifts into a non-operational CEO emeritus role as an advisor and brand ambassador.
The Loss Behind the Decision
Smith had planned for his only child, Chris, to eventually take over the company. Chris died of ALS five years ago, a year after the death of Smith’s wife of 57 years, Jo Allison. With no heir to hand the business to, and no buyer he trusted to preserve its culture, the purpose trust became Smith’s way of making sure Grady-White outlives him on his terms.
A Payday for Everyone on the Floor
Smith didn’t leave empty-handed for his crew, either. According to Grady-White, every current employee received a bonus tied to years of service and craftsman level, totaling in the millions of dollars. More than 350 employees were in the room when it was announced, and the company says there were plenty of tears — happy ones.
What It Means for Grady-White Owners
For anglers running a Grady-White, or eyeing one, the structure is designed to mean business as usual: same Greenville, North Carolina production line, same executive team, same customer-satisfaction track record that’s earned the company every major third-party award in the marine industry, including all eight J.D. Power Customer Satisfaction Awards in its category. The difference is what happens to the profits going forward, and who’s guaranteed to still be steering the ship in twenty years.