Chris-Craft Industries

Chris-Craft Industries was a diversified American company whose corporate history connected automotive materials, chemicals, boatbuilding, television broadcasting, and network television. It began in Detroit in 1928 as National Automotive Fibers, a supplier of upholstery, carpeting, interior trim, and plastic components to automobile manufacturers including Chrysler, Ford, and Studebaker-Packard. Although the business was commercially successful, its dependence on the automotive sector left it vulnerable to industry conditions. After a substantial loss in 1956, investment banker Paul V. Shields acquired control and began reshaping the company through product-line reductions and diversification. The company expanded into chemicals through its ownership of Montrose Chemical and into radio and television broadcasting. In 1959, the business adopted the name NAFI Corporation. That year, NAFI and a group led by entertainer Bing Crosby acquired KPTV in Portland, Oregon; the corporation also became involved with KCOP-TV in Los Angeles. These transactions marked the beginning of a long-term shift toward media ownership. The company’s acquisition of Chris-Craft Boats in 1960 brought a recognizable consumer name into the corporate structure, and the merged business was renamed Chris-Craft Industries in 1962. A brief move into brewing followed through the acquisition of Old Crown Brewing Corporation, although that business was later sold to its employees. Chris-Craft’s boat operations were historically associated with mahogany-hulled powerboats, particularly during the 1920s through the 1950s. During the 1960s, the company attempted to modernize its marine offering as fiberglass became increasingly important in recreational boating. The 1964 launch of the fiberglass Chris-Craft Commander represented this transition. The Commander began as a 38-foot express hardtop and developed into a broader range of fiberglass boats. Nevertheless, manufacturing and design competition weakened the boat division’s position. Competitors used newer fiberglass production methods and lower-cost manufacturing approaches, while Chris-Craft continued to carry the legacy of more expensive construction. The company ended production of its last mahogany-hulled Constellation in 1971 and sold the boat division to Murray Industries in 1981, retaining the Chris-Craft trademark and licensing it to the buyer. Corporate control also changed during this period. In 1968, Baldwin-Montrose Chemical Company acquired a controlling interest and installed Herbert J. Siegel as chairman. By 1977, Chris-Craft had consolidated its television assets in BHC, Inc., with KCOP and KPTV held through Chris-Craft Television. The company also pursued an ambitious media strategy involving 20th Century Fox. It acquired a stake in Fox and unsuccessfully attempted a hostile takeover in 1979. In 1981, its then-20 percent Fox interest was exchanged with Marvin Davis and Marc Rich for a 19 percent interest in United Television. After selling the boat division, Chris-Craft Industries concentrated on broadcasting. BHC expanded through acquisitions, including WWOR-TV in the New York area in 1992 and stations in Baltimore and Orlando later in the decade. In 1994, BHC and Paramount Television announced United Paramount Network, or UPN, a new network aimed initially at a young male audience. Chris-Craft initially owned all of UPN, while Paramount held an option to acquire an equal stake. Viacom exercised that opportunity in 1997, purchasing 50 percent for $160 million. The later Viacom-CBS merger created regulatory and contractual uncertainty because of restrictions concerning common ownership of broadcast networks. BHC challenged the merger in court but lost, then sold its remaining UPN interest to Viacom for $5 million. Following substantial losses associated with UPN and uncertainty about the network’s future, Chris-Craft announced its withdrawal from broadcasting. Its television stations were ul…

Chris-Craft Industries originated as National Automotive Fibers, founded in Detroit in 1928 to manufacture interior materials for automobile companies. Its products included upholstery, carpeting, trim, and plastics. The company later acquired Montrose Chemical Company, but automotive supply remained its primary business until financial pressure exposed the limits of that concentration. In 1956, National Automotive Fibers recorded a major loss. Paul V. Shields, a senior partner at Shields & Company, acquired the company and pursued diversification, reducing some product lines while adding oil and gas, broadcasting, and other activities. The corporation became NAFI Corporation in 1959. Its broadcasting expansion began with the acquisition of KPTV in Portland, Oregon, by NAFI and a group led by Bing Crosby. The corporation also acquired an interest connected with KCOP-TV in Los Angeles. Chris-Craft Boats was acquired by NAFI in 1960, and the combined company adopted the Chris-Craft Industries name in 1962. The Chris-Craft name came from a boatbuilder known for high-quality powerboats, especially mahogany craft that were prominent from the 1920s through the 1950s. Chris-Craft Industries also bought Old Crown Brewing Corporation in 1962, but sold the brewery to its employees soon afterward. The boat business faced an industry-wide shift toward fiberglass construction. Chris-Craft introduced the fiberglass Commander in 1964 at the New York City National Boat Show. The initial model was a 38-foot express hardtop, and the Commander range subsequently expanded across multiple sizes. The company nevertheless lost market share to competitors with newer designs and less costly production. Its last mahogany-hulled Constellation was produced in 1971. In 1981, Chris-Craft Industries sold the boat division to Murray Industries and retained the trademark under a licensing arrangement. In 1968, Baldwin-Montrose Chemical Company acquired control of Chris-Craft and installed Herbert J. Siegel as chairman. During the 1970s, the company increasingly organized itself around media assets. In 1977, it formed BHC, Inc. to hold its television properties, including KCOP and KPTV, through Chris-Craft Television. It also acquired a stake in 20th Century Fox and attempted an unsuccessful hostile takeover in 1979. In 1981, the Fox stake was exchanged for an interest in United Television. The sale of the boat division left broadcasting as Chris-Craft Industries’ central operating activity. BHC expanded its station portfolio, acquiring Pinelands and WWOR-TV in 1992, and later adding stations in Baltimore and Orlando. In 1994, BHC and Paramount Television created UPN. Chris-Craft initially held complete ownership, with Paramount retaining an option to acquire half. Viacom purchased a 50 percent share in 1997 for $160 million. The subsequent Viacom-CBS merger created a conflict with broadcast-network ownership rules and raised questions about UPN’s future. BHC brought a lawsuit against the merger but was unsuccessful. It sold its remaining UPN interest to Viacom for $5 million and then announced that it would leave broadcasting after heavy losses tied to UPN. Fox Television Stations ultimately acquired the Chris-Craft station group, closing the transaction on July 31, 2001. This sale marked the end of Chris-Craft Industries as a significant operating company.

1. 2001Television stations are sold to Fox

   Fox Television Stations completes its acquisition of the Chris-Craft station group on July 31, ending the company’s broadcasting operations.

   Source
2. 1997Viacom buys half of UPN

   Viacom acquires a 50 percent interest in UPN for $160 million.

   Source
3. 1994UPN is announced

   BHC and Paramount Television announce United Paramount Network, which launches programming in early 1995.

   Source
4. 1992BHC acquires WWOR-TV

   BHC acquires Pinelands, the MCA spin-off holding WWOR-TV in the New York area.

   Source
5. 1979Hostile bid for 20th Century Fox fails

   Chris-Craft attempts to take over 20th Century Fox but does not succeed.

   Source
6. 1977BHC is formed

   Chris-Craft creates BHC, Inc. to hold its television properties, including KCOP and KPTV.

   Source
7. 1971Production of the last mahogany Constellation ends

   Chris-Craft ends production of its final mahogany-hulled Constellation model.

   Source
8. 1968Baldwin-Montrose gains control

   Baldwin-Montrose Chemical Company takes a controlling interest and Herbert J. Siegel becomes chairman.

   Source
9. 1964Fiberglass Commander is introduced

   Chris-Craft presents the fiberglass Commander at the New York City National Boat Show, signaling a move beyond its traditional mahogany construction.

   Source
10. 1962The corporation adopts the Chris-Craft Industries name

    Following the boat-company acquisition, the merged corporation is renamed Chris-Craft Industries.

    Source
11. 1960Chris-Craft Boats is acquired

    NAFI Corporation acquires Chris-Craft Boats and merges the boatbuilder into its diversified corporate structure.

    Source
12. 1959The company becomes NAFI Corporation

    National Automotive Fibers adopts the NAFI Corporation name as it broadens its activities into broadcasting and other businesses.

    Source
13. 1956Major loss prompts restructuring

    A major financial loss exposes the company’s dependence on automotive customers and precedes Paul V. Shields’ acquisition and diversification program.

    Source
14. 1928National Automotive Fibers is formed

    National Automotive Fibers is established in Detroit as a supplier of automotive upholstery, carpeting, interior trim, and plastic products.

    Source

A diversified American holding company that moved from automotive supply and industrial materials into branded boatbuilding and, ultimately, television broadcasting.

• Automotive interior materialsAutomotive components1928

  National Automotive Fibers supplied upholstery, carpeting, interior trim, and plastic products to major American automobile manufacturers. These materials formed the company’s original industrial base before diversification into chemicals, broadcasting, and branded consumer products.

• Chris-Craft mahogany powerboatsRecreational boats

  The traditional Chris-Craft range consisted of mahogany-hulled powerboats associated with the brand’s strongest period from the 1920s through the 1950s. The boats emphasized styling and craftsmanship, but their relatively expensive construction became less competitive as fiberglass production expanded.

• Chris-Craft CommanderFiberglass recreational boats1964

  Introduced in 1964, the Commander was Chris-Craft Industries’ prominent fiberglass transition. The first model was a 38-foot express hardtop with a 13-foot beam, and the line later broadened to cover boats from approximately 19 to 60 feet.

• Television stationsBroadcasting assets1959

  Through BHC Communications and related subsidiaries, Chris-Craft owned and operated a portfolio of American television stations, including KCOP-TV, KPTV, WWOR-TV, and later stations in Baltimore and Orlando. These assets became the company’s core business after the boat division was sold.

• United Paramount NetworkBroadcast television network1995

  UPN was a broadcast network created by BHC and Paramount Television. Chris-Craft initially owned the network outright, then shared ownership with Viacom after Viacom acquired a 50 percent stake in 1997. The network was intended to expand the company’s broadcasting presence beyond individual stations.

• 2001Exit from broadcastingStrategy

  After the UPN dispute and substantial losses associated with the network, the future of the company’s broadcasting strategy became uncertain.

  What changed. Chris-Craft announced that it would leave broadcasting and pursued a sale of its television stations.

  Aftermath. News Corporation’s Fox Television Stations acquired the station group in a transaction completed on July 31, 2001, ending Chris-Craft Industries’ principal operating activities.

  Source
• 2000Litigation over the Viacom-CBS mergerOther

  The proposed Viacom-CBS merger raised concerns because broadcast regulations restricted companies from owning two broadcast networks, while the transaction also affected the parties’ UPN relationship.

  What changed. BHC filed a lawsuit challenging the merger as inconsistent with the UPN partnership.

  Aftermath. BHC lost the lawsuit and subsequently sold its remaining UPN ownership to Viacom for $5 million.

  Sale price for remaining UPN interest. $5 million (2000)

  Source
• 1997Viacom purchases half of UPNM&A

  Paramount’s option under the original UPN arrangement allowed a major studio and media company to obtain an equal share.

  What changed. Viacom acquired a 50 percent interest in UPN for $160 million.

  Aftermath. The partnership later became contentious after Viacom announced its merger with CBS, raising regulatory and contractual questions about common ownership of broadcast networks.

  Purchase price for 50 percent of UPN. $160 million (1997)

  Source
• 1994Creation of UPNProduct launch

  Chris-Craft’s broadcasting strategy had expanded from ownership of local stations toward participation in a national television network.

  What changed. BHC and Paramount Television announced United Paramount Network, which began broadcasting original prime-time programming in early 1995.

  Aftermath. Chris-Craft initially owned all of UPN, but Viacom later acquired a 50 percent interest and became a major strategic partner.

  Source
• 1981Divestiture of the boat divisionM&A

  The boat business had faced sustained competitive pressure from companies using newer designs and less expensive fiberglass manufacturing methods.

  What changed. Chris-Craft Industries sold the boat division to Murray Industries while retaining the Chris-Craft trademark and licensing it to Murray.

  Aftermath. The company shifted its strategic focus to broadcasting and no longer directly manufactured the boats through its former boat division.

  Source
• 1977Consolidation of television holdingsStrategy

  Television ownership had become an increasingly important part of the company’s diversified portfolio.

  What changed. Chris-Craft formed BHC, Inc. to hold its existing television stations through Chris-Craft Television.

  Aftermath. BHC became the principal vehicle for later station acquisitions and the company’s UPN investment.

  Source
• 1964Launch of the fiberglass CommanderProduct launch

  Fiberglass construction was becoming an important competitive alternative to traditional mahogany boatbuilding.

  What changed. Chris-Craft introduced the Commander, a fiberglass express hardtop, and expanded the line across multiple sizes.

  Aftermath. The launch demonstrated an effort to modernize the boat portfolio, although the division continued to lose market share to lower-cost and innovative competitors.

  Source
• 1960Acquisition of Chris-Craft BoatsM&A

  NAFI Corporation was seeking diversification and acquired an established powerboat company with a recognized consumer name.

  What changed. NAFI acquired Chris-Craft Boats and merged it into the corporation.

  Aftermath. The corporate name changed to Chris-Craft Industries in 1962, making the boat brand the company’s public identity even as broadcasting grew in importance.

  Source
• 1959Diversification beyond automotive supplyStrategy

  National Automotive Fibers had been concentrated in automotive materials and suffered a major loss in 1956.

  What changed. Under Paul V. Shields, the company reduced some automotive product lines and expanded into chemicals, oil and gas, radio, and television.

  Aftermath. The corporation adopted the NAFI name and developed a broader portfolio that later supported its transformation into Chris-Craft Industries.

  Source

• 2001Chris-Craft exits broadcasting

  After losing its remaining UPN interest and reporting major losses associated with the network, Chris-Craft announced its departure from broadcasting. Its stations were sold to Fox Television Stations in a transaction completed on July 31, 2001.

  M&A
  Source
• 2000BHC challenges the Viacom-CBS merger

  BHC sued over the Viacom-CBS merger, arguing that the transaction conflicted with the parties’ UPN arrangements. BHC lost the case and later sold its remaining UPN interest to Viacom.

  LawsuitRegulation
  Source
• 1997Viacom acquires a 50 percent interest in UPN

  Viacom acquired half of UPN from Chris-Craft for $160 million, changing the ownership structure of the network.

  M&A
  Source
• 1994Chris-Craft and Paramount announce UPN

  BHC Communications and Paramount Television announced the creation of United Paramount Network, a new broadcast network that began programming in early 1995.

  Product launch
  Source
• 1981Chris-Craft sells its boat division to Murray Industries

  Chris-Craft Industries divested its boat-manufacturing division while retaining the Chris-Craft trademark and licensing it to Murray Industries.

  M&A
  Source

1. Chris-Craft Industries