|Cavalier Yachts was created as a partnership between Peter Smith and John Salthouse, trading as Salthouse Custom Glass Boats Ltd, later changed to Custom Glass Boats Ltd. They initially produced the successful Cavalier 32 as well as the Coronet Trailer Sailer and the Corsair 36 launch.|
Salthouse and Smith amicably parted company with Smith taking the Cavalier Yachts half of the business. Smith introduced two new partners, Pat Sullivan as administrator and accountant, and Grant Bennet as floor and production manager.
At its peak, Cavalier Yachts had eleven designs in simultaneous production, and was the largest production boatbuilder in the southern hemisphere.