August 11, 2026

In their member newsletter, the NMMA reported that Grady-White Boats has announced that owner Eddie Smith is transferring control of the company to a perpetual purpose trust, an ownership model designed to preserve the company’s long-standing commitment to employees, customers, dealers and the Greenville, N.C., community while directing future profits to charitable causes. Believed to be the first such ownership transition in the recreational marine industry, and the largest U.S. purpose trust established since Patagonia’s 2022 transition, the announcement garnered national attention, including coverage in The New York Times.

Smith, an NMMA Hall of Fame inductee who helped establish the National Marine Manufacturers Association and later served as its second board chairman, who purchased Grady-White in 1968 and transformed the company into one of the industry’s most respected premium boat builders, said he declined offers exceeding $400 million because he wanted to ensure the company’s values—including employee profit sharing, exceptional customer service, product quality and community investment—would endure for generations. Under the new ownership structure, Grady-White’s executive leadership team will remain in place, with Smith serving as CEO emeritus and advisor. As part of the transition, the company also awarded millions of dollars in bonuses to current employees in recognition of their contributions.

The New York Times reported that Smith was inspired in part by Patagonia founder Yvon Chouinard’s 2022 ownership transition, choosing a structure that prioritizes long-term stewardship over a traditional sale. The story highlights the growing interest among privately held companies in alternative succession models that preserve company culture while providing long-term stability for employees, customers and communities.