Polaris has announced a plan to separate Indian Motorcycle from its broader portfolio, transforming it into a standalone business entity. In this strategic move, Polaris has entered into a definitive agreement to sell a majority interest in Indian Motorcycle to Carolwood LP, an independent private equity firm based in Los Angeles, California, which was founded in 2014.
For context, Indian Motorcycle contributed approximately $478 million, representing about 7.0% of Polaris’ total revenues over the twelve-month period that ended on June 30, 2025. The separation is expected to be financially beneficial for Polaris, with projections indicating that the transaction could enhance Polaris’ annualized adjusted EBITDA by around $50 million, while adjusted earnings per share (EPS) could see an increase of about $1.
The deal is anticipated to close during the first quarter of 2026, pending the fulfillment or waiver of standard closing conditions. Polaris leaders are optimistic about the future of Indian Motorcycle under Carolwood’s stewardship, planning to retain a minority equity stake in the newly independent company after the deal is finalized.
As part of this transition, Carolwood has appointed Mike Kennedy to take on the role of CEO for the independent Indian Motorcycle organization once the sale is completed. Bringing over 30 years of experience in the motorcycle industry, Kennedy has a strong track record of leadership. His previous roles include serving as the CEO of RumbleOn, the largest powersports dealership group in the nation, as well as CEO and President of Vance & Hines, a key manufacturer of high-performance aftermarket motorcycle exhaust systems and accessories. Notably, he also spent 26 years at Harley-Davidson in various leadership positions, which further lends to his expertise in this field.
The transition will also ensure continuity for the Indian Motorcycle brand, with approximately 900 employees making the move to the new company. This includes a substantial retention of the team responsible for engineering, design, and other essential roles, along with manufacturing resources. The manufacturing facilities located in Spirit Lake, Iowa, and Monticello, Minnesota, as well as the industrial design and technology center situated in Burgdorf, Switzerland, will transfer to Indian Motorcycle as part of this agreement.
Following the completion of the sale, Indian Motorcycle is set to operate independently from Polaris, maintaining its sales, service, and support functions for both dealers and customers. The company plans to continue selling motorcycles, parts, garments, and accessories, ensuring its global dealer network remains functional throughout the transition.
In the interim, Mike Dougherty, who currently serves as Polaris’ President of On Road and International, will oversee the On Road and International business segments, including Indian Motorcycle. Dougherty, who has devoted nearly 28 years to Polaris, has expressed his intention to retire once the transaction is finalized. Over the coming months, he will play a crucial role in guiding Indian Motorcycle as it embarks on its new journey as an independent entity.
Advisors: Goldman Sachs is serving as financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor to Polaris. And Sheppard, Mullin, Richter & Hampton LLP is serving as legal advisor to Carolwood LP. Carolwood is also being advised by RSM, Alliant, and Finnea Group.
KEY QUOTES:
“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. For Polaris, the sale will further strengthen our focus on the areas of our portfolio that offer the strongest growth potential and allow us to accelerate investments in key initiatives and create wins with customers and dealers. It also will unlock greater long-term value for Polaris and our shareholders, with immediate value creation that we expect will become increasingly meaningful over time.”
“Under Polaris’ ownership and investment, Indian Motorcycle has been re-established as a celebrated brand and major player in the global motorcycle market. With its current product portfolio, global dealer network, category expertise and manufacturing resources, the Business is well positioned to succeed as a standalone company with a dedicated focus on its industry. We were highly intentional and selective in our search and planning efforts for Indian Motorcycle’s next chapter of growth. In Carolwood, Indian Motorcycle has a partner that believes in building on the Business’ current momentum and supporting its next stage of success. We are confident and committed to making this a seamless transition for Indian Motorcycle dealers, customers and employees.”
“During his tenure with Polaris, Mike’s passionate leadership is responsible for countless contributions. As a result of his tenacity and guidance, Mike shaped our international business into what it is today, scaling it over the last 25 years and establishing a direct presence in more than fifteen countries. He has expanded our business outside of North America, growing revenue from under $100 million in 2000 to more than $1 billion today, as well as strengthened our On Road businesses within their respective markets, including Indian Motorcycle achieving the No. 1 market share position in the United States for mid-size cruisers last year. More than that, Mike is known for the teams he builds, the talent he cultivates and the culture he fosters, and I want to thank Mike for his dedication to Polaris all these years. We wish him the very best in his future retirement.”
“As we prepare to report our third quarter results, we’re encouraged by improving retail trends with ORV ex-Youth up low double digits and continued strong share gains in ORV. Based on preliminary data, we expect third quarter sales to be at the high end of our previously issued guidance range of $1.6 billion to $1.8 billion. We anticipate third quarter adjusted EPS to be in the range of $0.31 to $0.41, which is meaningfully higher than our original expectations, driven by higher-than-expected shipments, strong cost management and ongoing progress within our operational efficiency initiatives.”
Polaris Chief Executive Officer Mike Speetzen
“Indian Motorcycle is an iconic brand built on American heritage, craftsmanship, and most importantly, a community of riders. We’re honored to help usher in its next chapter as an independent company and to support its continued growth as a symbol of performance and pride. At Carolwood, we target iconic brands that we can passionately impact. Indian Motorcycle allows us to do just that.”
Andrew Shanfeld, Principal at Carolwood
“Indian Motorcycle has defined American motorcycling for over a century, and Carolwood’s role is to ensure that legacy thrives for the next hundred years. 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. At Carolwood, we’re deeply committed to preserving what makes Indian Motorcycle special, supporting its growth, and empowering the team to write its next great chapter.”
Adam Rubin, Principal at Carolwood
