Knapp Firm to Buy Interest in Boat Company : Maker of Chris Craft OKs Sale to Trafalgar

The maker of Chris Craft pleasure boats agreed Monday to sell a substantial stake in the business to Trafalgar Holdings, a Los Angeles investment firm controlled by financier Charles W. Knapp.

Donald Reynolds, Trafalgar executive vice president, said Trafalgar had agreed to pay between $50 million and $100 million for a “very major piece” of Murray Industries of Sarasota, Fla. Industry sources said that based on the price range, Trafalgar had apparently acquired a majority interest.

Murray Industries is the third-largest maker of pleasure powerboats in the nation, behind Seattle-based Bayliner Marine and Sea Ray of Nashville, Tenn. It reported sales of $175 million for the year ended last June 30.

Sales Predictions Vary

Reynolds said he expects powerboat sales to grow considerably during the next few years as declining interest rates and gasoline prices make it cheaper to own and operate a boat. Others in the boat industry, however, expect the rapid sales growth of the last few years to slow somewhat, with sales this year about even with last year.

Chris Craft itself has said it expects sales to grow between 6% and 8% this year.

G. Dale Murray, who controls more than 90% of Murray-Chris Craft, purchased the troubled company from Chris Craft Industries in 1981. Its sales that year were $26 million. Over the next four years, Murray expanded the Chris Craft dealer network to about 200 from 35, introduced new boat models and increased sales sixfold.

Murray, who will remain chairman of the company, said in a statement that the infusion of capital from Trafalgar will aid the company’s plan “to become the largest manufacturer of sport and pleasure craft in the world.”

The deal with Trafalgar is expected to close June 1.

Murray-Chris Craft reportedly plans to add a line of large luxury power yachts in the 95- to 140-foot class. Tim Clarke, Murray Industries vice president, said the company might also purchase other boat or boat accessory makers.