In a stunning decision, Polaris sells Indian Motorcycle to Carolwood LP. With 900 employees joining the new firm, the deal boosts Polaris’ equity by 10%.
In a historic move, Polaris Inc. announced it will sell most of Indian Motorcycle to private equity firm Carolwood LP. The brand will now operate as a stand-alone company. The sale marks a major shift for Polaris as it hands control of the 124-year-old motorcycle icon to former Harley-Davidson CEO Mike Kennedy. Polaris will now focus on its core off-road vehicle business.
Indian Motorcycles Polaris: Deal Structure and Financial Impact
The agreement, which is scheduled to be finalized in early 2026, offers Polaris a minority ownership in Indian Motorcycle while giving Carolwood LP overall control. Indian Motorcycle made around $478 million in revenue over the past year, around 7% of Polaris’s total revenues.
For both businesses, the financial ramifications are substantial. Polaris anticipates a $50 million increase in adjusted EBITDA from Indian motorcycle sales. A $1 yearly increase in earnings per share is possible. The stock of Polaris gained more than 10%, closing at $61.30 and reaching $68 after hours.
Leadership Transition and Employee Impact
After the deal complete, Carolwood has named Mike Kennedy, a veteran of the motorcycle industry, as Indian Motorcycle’s new CEO. Kennedy has over 30 years of experience, leading roles at Vance & Hines, Harley-Davidson, and RumbleOn.
About 900 workers will be impacted by the changeover as they transfer from Polaris to the new independent Indian motorcycle business. The design center in Burgdorf, Switzerland, as well as manufacturing plants in Spirit Lake, Iowa, and Monticello, Minnesota, will move to the new organization. After a stellar 28-year career with Polaris, current President of On-Road and International, Mike Dougherty, will supervise the transition before retiring.
Strategic Rationale Behind the Spinoff
“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,” said Mike Speetzen, CEO of Polaris, who outlined the strategic reasoning for the decision.
The division gives Indian Motorcycle committed leadership focused solely on the motorcycle industry, while Polaris is able to focus on its higher-growth areas, such as side-by-side vehicles, ATVs, and snowmobiles. This occurs as Polaris deals with difficult market conditions, such as low customer demand and unstable economic situations, which previously compelled the corporation to revoke its yearly projections.
What This Means for Indian Motorcycle’s Future
For the first time since Polaris purchased the Indian Motorcycle brand in 2011, the company will function independently under Carolwood’s ownership. Carolwood Principal Andrew Shanfeld highlighted the school’s dedication to “preserving what makes Indian Motorcycle special, supporting its growth, and empowering the team to write its next great chapter.”
In light of Harley-Davidson’s recent actions in the electric motorcycle market, the new organization may expedite product development and investigate new avenues, such as electrification. It is anticipated that dealers and consumers would experience continuity during the transition, with no abrupt changes to the product portfolio or service operations and all current promises being upheld.
FAQs
Polaris is spinning off Indian to focus on its core off-road vehicle business and unlock shareholder value, while giving Indian dedicated leadership to accelerate growth.
Private equity firm Carolwood LP is acquiring majority control, with Polaris retaining a minority stake.
Approximately 900 of Indian’s 1,000+ employees will transition to the new company, suggesting some workforce reduction is likely.
Former Harley-Davidson executive Mike Kennedy will become CEO once the transaction closes in Q1 2026
Polaris promises a “seamless transition” with continued sales, service, and support through the existing dealer network.
Plants in Spirit Lake, Iowa, and Monticello, Minnesota, along with the Swiss design center, will transfer to the new company.
What’s your take on this landmark deal? Will independent ownership help or hurt Indian Motorcycle’s future? Share your thoughts in the comments below!
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