Polaris Inc. has confirmed the sale of a majority stake in its iconic Indian Motorcycle brand to Los Angeles-based private equity firm Carolwood LP, marking the Minnesota company's official exit from the motorcycle business. The deal will allow Indian to operate as an independent company while Polaris shifts focus to other high-growth areas of its portfolio.
In a press statement issued on Monday, 13 October, Polaris said the transaction is expected to close in the first quarter of 2026, pending regulatory approvals. Although financial details were not disclosed, the company projected the sale will boost its adjusted annual earnings per share by roughly $1 (£0.82) and increase adjusted EBITDA by about $50 million (£41 million).
Polaris will retain a minority stake in Indian Motorcycle, reflecting continued confidence in the brand's long-term success under Carolwood's ownership.
For the fiscal year ending 30 June 2025, Indian generated approximately $478 million (£392 million) in revenue, accounting for about seven per cent of Polaris's total.
New Era for Indian Motorcycle
Polaris CEO Mike Speetzen said the separation will allow both companies to pursue their strategic goals independently.
'Polaris and Indian Motorcycle both stand to benefit from this deal, which will enable each business to move faster, deliver industry-leading innovation, and lean further into our respective market strengths,' Speetzen said.
He added that the transaction will strengthen Polaris's ability to focus on its fastest-growing divisions, such as off-road vehicles and marine products, while creating greater value for shareholders.
Polaris acquired Indian in 2011 and played a key role in reviving the century-old brand, turning it into a respected competitor to Harley-Davidson in the heavyweight cruiser market.
'Under Polaris's ownership and investment, Indian Motorcycle has been re-established as a celebrated brand and major player in the global motorcycle market,' Speetzen added.
Carolwood to Lead the Next Chapter
Founded in 2014, Carolwood LP specialises in acquiring and scaling established American brands. Its principal, Andrew Shanfeld, called the acquisition an opportunity to expand one of the country's most iconic motorcycling names.
'Indian Motorcycle is an iconic brand built on American heritage, craftsmanship, and most importantly, a community of riders,' Shanfeld said. 'We're honoured to help usher in its next chapter as an independent company and to support its continued growth as a symbol of performance and pride.'
Carolwood has appointed industry veteran Mike Kennedy as CEO of the newly formed company. With more than 30 years in the motorcycle industry, Kennedy previously led RumbleOn, Vance & Hines, and held senior roles at Harley-Davidson.
Adam Rubin, also a principal at Carolwood, said Kennedy's experience made him the ideal choice to lead Indian's future growth. 'Mike Kennedy brings over 30 years of experience leading iconic motorcycle and performance brands and will play a critical role in stewarding Indian Motorcycle's growth,' Rubin said.
Continuity for Employees and Dealers
Approximately 900 employees will transition to the new company, including engineers, designers and manufacturing staff. Indian's facilities in Spirit Lake, Iowa, Monticello, Minnesota, and Burgdorf, Switzerland, will continue operating under the independent business.
Dealers and customers are not expected to experience disruption. Indian will continue to sell and service motorcycles, accessories and apparel globally through its established dealer network.
Polaris Refocuses Strategy
Polaris's President of On Road and International, Mike Dougherty, will oversee Indian Motorcycle during the transition before retiring after nearly three decades with the company. Speetzen praised Dougherty's leadership, citing his role in growing international revenue from under $100 million (£82 million) in 2000 to more than $1 billion (£820 million) today.
The divestiture marks a significant shift for Polaris, enabling it to streamline operations and concentrate investment in sectors with higher growth potential.
With a dedicated owner, an experienced leadership team and a strong legacy, Indian Motorcycle is now positioned to accelerate its global expansion as a fully independent brand.
