Polaris Divests Indian Motorcycle to Carolwood LP in Strategic Separation

Polaris Divests Indian Motorcycle: A New Chapter

On October 13, 2025, Polaris Inc. revealed a significant strategic move that will reshape its business landscape. The iconic company has decided to separate its Indian Motorcycle brand into an independent entity by selling a majority stake to Carolwood LP, a private equity firm based in Los Angeles. This transition aims to sharpen operational focus for both Polaris and Indian Motorcycle, a brand that has long been synonymous with American motorcycle heritage.

The agreement to sell Indian Motorcycle is pivotal for Polaris, as it will allow the company to redirect its resources and efforts toward sectors within its portfolio that promise extensive growth and profitability. Indian Motorcycle has contributed significantly to Polaris’ revenue, bringing in approximately $478 million, or 7% of the company's total revenue for the twelve-month period that ended on June 30, 2025.

Financial Implications of the Separation

The financial benefits of this transaction appear promising. Once finalized, which is expected in the first quarter of 2026, Polaris anticipates that the sale will enhance its annualized adjusted EBITDA by around $50 million and adjusted earnings per share by approximately $1.00. Polaris Chief Executive Officer Mike Speetzen expressed confidence in the successful future of Indian Motorcycle under Carolwood’s management. The company will retain a minor equity stake in Indian Motorcycle, ensuring a continued interest in its operation.

"Both Polaris and Indian Motorcycle will gain from this separation, allowing each to progress swiftly and innovate within their respective markets," said Speetzen. He emphasized that this deal translates into immediate and long-term value for both companies and their shareholders.

Transitioning Leadership and Continuity

Carolwood LP has appointed Mike Kennedy as the new CEO of the standalone Indian Motorcycle company. Kennedy boasts over 30 years of experience in the motorcycle industry, having previously held leadership roles at notable companies like RumbleOn and Harley-Davidson. This experienced leadership is expected to drive Indian Motorcycle’s operations with renewed focus.

Alongside leadership changes, a vital aspect of this deal includes the transition of approximately 900 employees to the new Indian Motorcycle company. This move ensures a seamless continuation of familiar teams, including engineers and designers, who will help maintain the brand's strength as it operates independently of Polaris. Key manufacturing facilities in Spirit Lake, Iowa, and Monticello, Minnesota, along with a technology center in Burgdorf, Switzerland, will also transition to support the new entity.

Kennedy, the newly appointed CEO, reflected on Indian Motorcycle’s deep-rooted legacy, stating, "Indian Motorcycle has defined American motorcycling for over a century. Our objective at Carolwood is to ensure this legacy thrives for the next hundred years."

Future Prospects and Polaris Leadership Changes

As Polaris prepares for this transition, current leadership, particularly Mike Dougherty, President of On Road and International, will guide the company through these changes. Dougherty has announced his intention to retire post-transaction, concluding a remarkable 28-year career at Polaris. His leadership has been instrumental in scaling the company’s international business and cultivating a strong market presence.

The upcoming changes mark a critical turning point for both Polaris and Indian Motorcycle as they embark on their separate journeys. Polaris is set to announce its third-quarter results soon, providing further insights into how this divestment will shape its strategic direction moving forward. By positioning itself more definitively within lucrative market segments, Polaris aims for stronger growth, operational efficiency, and enhanced shareholder value.

Conclusion

Polaris’ decision to divest from Indian Motorcycle is more than a simple transaction; it represents a strategic pivot aimed at optimizing growth potential for both parties. As Indian Motorcycle steps into its new independent chapter under the stewardship of Carolwood, the motorcycle brand is poised to build on its heritage, focusing on innovation and market competitiveness for the future. The coming months will be indicative of how both companies adapt and thrive in their respective paths, marking the start of a new era for their operations.