Rather than selling Grady-White Boats for an estimated $400 million, longtime owner Eddie Smith Jr. has chosen a different path: Giving the company’s future profits to charity. Smith has gifted control of the iconic Greenville, North Carolina, boatbuilder to a perpetual purpose trust, ensuring it will remain privately held and continue operating according to the values that have guided it for nearly six decades.
Under the new structure, Grady-White will continue serving its employees, customers and dealers, while profits not reinvested in the business will be distributed through a separate nonprofit. Smith intends that profits, which can be in the tens of millions per year, will be distributed to a variety of causes, including conservation, health care and education. The company’s approximately 350 employees will also retain benefits such as profit sharing, retirement contributions, financial literacy programs and on-site health care.
Smith’s decision is designed to preserve Grady-White’s independence, culture and commitment to quality for generations to come. Smith will remain involved in the company as chief executive emeritus.