Polaris to sell majority stake in Indian Motorcycle to private equity
Polaris Inc. announced plans to separate Indian Motorcycle into a standalone company, selling a majority stake to Los Angeles–based private equity firm Carolwood LP. The move marks a major shift for Polaris, which relaunched the historic brand in 2011 and helped it reclaim a strong presence in the global motorcycle market.
Under the agreement, Polaris will retain a minority equity position while Carolwood assumes majority ownership. Indian Motorcycle generated about $478 million in revenue, or 7% of Polaris’ total, for the 12 months ended June 30, 2025. The transaction is expected to close in early 2026, pending customary approvals.
Polaris expects the sale to be accretive to adjusted EBITDA by roughly $50 million and to boost adjusted earnings per share by $1.00 annually.
“Both Polaris and Indian Motorcycle stand to benefit from this deal,” says Polaris CEO Mike Speetzen. “It will allow each business to move faster and focus on areas of greatest opportunity—creating wins for customers, dealers, and shareholders.”
Speetzen praised the brand’s revival under Polaris, adding that Carolwood’s backing would give Indian “the dedicated focus and resources needed for its next stage of growth.”
Carolwood Principal Andrew Shanfeld called Indian Motorcycle “an iconic American brand built on craftsmanship and community,” adding that the firm aims to “support its continued growth as an independent company.”
When the transaction closes, Mike Kennedy — a 30-year motorcycle industry veteran — will become CEO of Indian Motorcycle. Kennedy’s career includes leadership roles as CEO of RumbleOn, president and CEO of Vance & Hines, and 26 years with Harley-Davidson.
Carolwood Principal Adam Rubin said Kennedy’s experience with top motorcycle and performance brands “will be key to stewarding Indian Motorcycle’s growth and preserving what makes it special.”
About 900 employees will transition to the new company, which will retain its Spirit Lake, Iowa, and Monticello, Minnesota, manufacturing operations, as well as its design and technology center in Burgdorf, Switzerland. The brand’s global dealer and service network will continue to operate without interruption.
Until the transaction closes, Mike Dougherty, Polaris president of On Road and International, will continue overseeing Indian Motorcycle. Dougherty plans to retire upon completion of the deal, capping a 28-year career that included growing Polaris’ international business from under $100 million to more than $1 billion in annual revenue.
Polaris also issued preliminary Q3 2025 results, expecting sales near the high end of its $1.6–$1.8 billion guidance and adjusted EPS between $0.31 and $0.41, driven by strong ORV performance and cost management. Final results will be released on October 28, 2025.
For dealers, the separation signals continued stability for the Indian Motorcycle brand, with new leadership focused exclusively on motorcycles and ongoing support for existing retail and service operations.
Financial advisors for the transaction include Goldman Sachs & Co. LLC for Polaris and Sheppard Mullin for Carolwood.
and here it is………i knew Polaris Indian was just another joke in the long line of Indian jokes, i thought when Polaris bought Indian that finally they had a parent company that will keep them going, but then the just dumped Victory screwing victory owners and dealers, now they are doing it again expanding dealerships and dumping the company…………..so glad i stayed with Harley
I hope it works. I also hope Carolwood understands that it will take time and allot of equity. Harley-Davidson seems to be flailing, but many still see H-D as a higher quality motorcycle. Work on fit, finishes, and longevity/reliability. Develop a made in the USA motorcycle that people can afford. And colors, lots of colors and color combinations. H-D used to have neat colors, combos, pint-stripes. I’m not sure what the heck happened, but the color palate is pretty drab compared to offerings 20 to 30 years ago. Don’t make people pay “special” pricing for beautiful colors either.
I just hope that they bring in management that have actually stepped inside an Indian dealership as opposed to venture capitalists. I have been in this industry a long time and seen company after company fail, mostly because they underestimate how tough this business really is. It looks easy from the outside, but it’s not. They don’t need grizzled veterans that can turn wrenches but they absolutely need people that have been eyeball with dealers and customers.