Polaris Inc. has announced the separation of its Indian Motorcycle division into a standalone company, selling a majority stake to Carolwood LP, a private equity firm based in Los Angeles. This strategic move is anticipated to sharpen the focus of both Polaris and Indian Motorcycle, allowing Polaris to concentrate on areas with the highest potential for profitable growth. The deal, confirmed on October 13, 2025, is expected to enhance Polaris’ adjusted EBITDA margins by approximately $50 million and boost adjusted earnings per share by around $1.00.
Indian Motorcycle contributed roughly $478 million, or 7.0%, of Polaris’ total revenues for the trailing twelve-month period ending June 30, 2025. The transaction is expected to close in the first quarter of 2026, subject to standard closing conditions. Following the sale, Polaris will retain a small equity interest in Indian Motorcycle, reflecting its ongoing commitment to the brand’s future.
Polaris Chief Executive Officer Mike Speetzen expressed confidence in the transition, stating, “This deal will enable each business to move faster and deliver industry-leading innovation.” He emphasized that the sale will allow Polaris to accelerate investments in key initiatives that create value for customers and shareholders.
The decision to spin off Indian Motorcycle comes after a period of revitalization under Polaris’ ownership, where the brand has been re-established as a significant player in the global motorcycle market. With a robust product portfolio and an extensive dealer network, Indian Motorcycle is well-positioned for independent success, according to Speetzen.
In a statement regarding the new partnership with Carolwood, Andrew Shanfeld, Principal at Carolwood, remarked, “We are honored to help usher in its next chapter as an independent company.” He also noted that Indian Motorcycle embodies American heritage and craftsmanship, which aligns with Carolwood’s investment philosophy.
As part of the transition, Mike Kennedy has been appointed as the CEO of the new Indian Motorcycle entity. Kennedy brings over 30 years of experience in the motorcycle industry, having previously held leadership positions at RumbleOn and Vance & Hines, as well as a lengthy tenure at Harley-Davidson. Adam Rubin, another Principal at Carolwood, highlighted Kennedy’s expertise as critical to preserving Indian Motorcycle’s legacy and guiding its growth.
Approximately 900 employees will transition to the new company, retaining key personnel such as engineers and designers. Manufacturing operations will continue at facilities in Spirit Lake, Iowa, and Monticello, Minnesota, along with the industrial design center in Burgdorf, Switzerland. Indian Motorcycle will maintain its commitment to providing sales, service, and support through its global dealer network during this transition.
Polaris President of On Road and International Mike Dougherty will oversee the transition until the deal is finalized. After nearly 28 years with the company, Dougherty has announced his intention to retire upon the closing of the transaction. Speetzen praised Dougherty’s contributions, stating, “His passionate leadership is responsible for countless contributions that have shaped our international business.”
In light of this announcement, Polaris is set to release its Q3 earnings results on October 28, 2025. Preliminary trends suggest positive retail growth, with expectations that third-quarter sales could reach the high end of the previously issued guidance range of $1.6 billion to $1.8 billion.
Goldman Sachs & Co. LLC is serving as financial advisor for Polaris, while Paul, Weiss, Rifkind, Wharton & Garrison LLP is providing legal counsel. Carolwood is advised by Sheppard, Mullin, Richter & Hampton LLP, along with RSM, Alliant, and Finnea Group.
As Polaris moves forward with this strategic separation, both companies aim to capitalize on their strengths, positioning themselves for future growth in the competitive motorcycle market.