In a move that will reshape the American V-twin landscape, Polaris Inc. (NYSE: PII) announced today it will separate Indian Motorcycle into an independent company, selling a majority stake to Los Angeles–based private equity firm Carolwood LP. The landmark decision positions Indian Motorcycle to operate as a standalone entity for the first time since its revival under Polaris in 2011.

The deal marks a major turning point for one of America’s most storied motorcycle brands. Under the terms of the agreement, Polaris will retain a minority equity position, while Carolwood takes majority control. The transaction—expected to close in the first quarter of 2026—will allow both companies to sharpen their strategic focus.

Polaris CEO Mike Speetzen emphasized that the separation will unlock value for shareholders and create new growth opportunities for both organizations.

“Polaris and Indian Motorcycle both stand to benefit from this deal, which will enable each business to move faster and lean further into their respective market strengths,” said Speetzen. “Indian Motorcycle has been reestablished as a celebrated brand and a major player in the global motorcycle market. Under Carolwood, it’s poised for continued success.”

Indian Motorcycle accounted for roughly $478 million, or 7% of Polaris’ revenues, for the twelve months ending June 30, 2025. The sale is projected to be accretive to Polaris’ adjusted EBITDA by $50 million and increase adjusted earnings per share by $1.00 annually.

For Polaris, the move allows the Minnesota-based powersports giant to focus its resources on off-road vehicles, snowmobiles, and marine products—segments that continue to drive its strongest margins and growth potential.

Founded in 2014, Carolwood LP has built a reputation for transforming iconic consumer brands into standalone powerhouses. Carolwood Principal Andrew Shanfeld praised Indian’s heritage and community of riders: “Indian Motorcycle is an iconic brand built on American craftsmanship and pride,” Shanfeld said. “We’re honored to usher in its next chapter as an independent company.”

Carolwood has tapped industry veteran Mike Kennedy as CEO of the new Indian Motorcycle Company. Kennedy brings over 30 years of leadership experience, including executive roles at Harley-Davidson, Vance & Hines, and most recently RumbleOn, the nation’s largest powersports dealership network.

Carolwood Principal Adam Rubin added, “Indian Motorcycle has defined American motorcycling for over a century. Mike Kennedy’s leadership will be instrumental in ensuring that legacy thrives for the next hundred years.”

Approximately 900 Indian Motorcycle employees—including engineers, designers, and production staff—will transition to the new company. Manufacturing will continue at the brand’s Spirit Lake, Iowa and Monticello, Minnesota facilities, with design and technology operations remaining in Burgdorf, Switzerland.

Dealers and riders can expect continuity in sales, service, and support throughout the transition. The Indian Motorcycle dealer network will remain active, and the brand will continue selling its lineup of motorcycles, parts, garments, and accessories.

As part of the transition, Mike Dougherty, Polaris President of On Road and International, announced his intent to retire following the transaction’s close. Dougherty has served nearly three decades with Polaris, playing a key role in expanding the company’s global footprint and building Indian Motorcycle into a competitive force.

Speetzen praised Dougherty’s leadership: “Mike’s vision and passion helped make Indian Motorcycle the powerhouse it is today. We thank him for his decades of dedication and leadership.”

Polaris also provided preliminary third-quarter 2025 results, citing improving retail trends and strong performance in off-road vehicles (ORV). The company expects sales near the high end of its $1.6–$1.8 billion guidance range, with adjusted EPS projected between $0.31 and $0.41—beating earlier expectations.

For Indian Motorcycle enthusiasts, the spinoff signals a new era of independence for America’s oldest motorcycle brand. With Carolwood’s investment and Kennedy’s leadership, industry watchers expect a renewed focus on innovation, performance, and heritage-driven design—a combination that could further ignite competition in the heavyweight and cruiser markets dominated by Harley-Davidson.

As Indian Motorcycle revs into its next century, riders and dealers alike will be watching closely to see how the brand balances its rich history with a modern, standalone future. See the below bullet points for what to expect next as this development takes shape.

Transaction Delivers Significant Benefits to Polaris and Indian Motorcycle

• Further strengthens Polaris’s focus on the areas of our portfolio that offer the strongest growth potential, unlocking greater long-term value for customers, dealers and shareholders.
• Accretive to Polaris’ adjusted EBITDA and EPS
• Positions Indian Motorcycle to move faster and deliver industry-leading innovation and provides a long-term partner in Carolwood that is committed to supporting the brand’s success.

Key Facts

• Indian Motorcycle to become standalone company.
• Carolwood to acquire majority stake in new, independent Indian Motorcycle company.
• Polaris will maintain a small equity position in Indian Motorcycle after the transaction closes.
• The deal is expected to be finalized in the first quarter of 2026.
• Seasoned industry leader Mike Kennedy brought on by Carolwood as operating partner and will take on the role of Indian Motorcycle CEO once the deal is final.
• Approximately 900 employees will transition from employment with Polaris to the new standalone Indian Motorcycle company once the deal is final in Q1 2026.
  • Indian Motorcycle will retain the majority of its current team, including engineers, designers and staff, along with manufacturing resources. Manufacturing facilities in Spirit Lake, Iowa, and Monticello, Minn., as well as the industrial design and technology center in Burgdorf, Switzerland, will transition to the new standalone motorcycle company as a part of the deal.

Background on Indian Motorcycle

• Indian Motorcycle is America’s First Motorcycle Company by George Hendee in Springfield, Massachusetts. In 1901, George’s company built the first American gas-powered bicycle and from there Indian Motorcycle’s legacy was born.
  • Additional details on Indian Motorcycle’s history can be found on its website: https://www.indianmotorcycle.com/en-us/history/
• In 2011, Polaris acquired Indian Motorcycle and under its leadership, Indian Motorcycle has been re-established.
  • Indian Motorcycle is the No. 2 motorcycle brand in the United States in the segments it plays, and holds the #1 market position in mid-size cruisers.
  • Indian Motorcycle is a renowned motorcycle brand with customers and fans around the globe.
  • Indian Motorcycle has propelled the market forward, introducing a host of industry-firsts through our engineering, design and technology.
    • With its Indian Scout platform, Indian Motorcycle was the first American V-twin brand to utilize liquid cooling as an alternative to air-cooled V-twin motors. 
    • Indian Motorcycle’s PowerPlus motor represented a step-change for the V-twin industry with its over-head cam, liquid cooled construction. Indian Motorcycle has a global dealer network of more than 600 dealers.

• Indian Motorcycle has a global dealer network of more than 600 dealers.

Background on Carolwood (https://www.carolwoodlp.com/)

• Carolwood is an independent, multi-strategy private equity firm based in Los Angeles and founded in 2014.
• The firm’s objective is to acquire a diverse portfolio of assets with long-term growth opportunities.
• Carolwood has specifically designed its approach and infrastructure to support scaled corporate subsidiaries as they transition into standalone companies.
• As a part of their strategy, Carolwood has designed its approach and infrastructure to support scaled corporate subsidiaries as they transition into standalone companies, and help them thrive in the future.
• Carolwood has invested in consumer, industrial, media, and technology companies, with a focus on businesses with revenues between $50 and $500 million that are poised for growth.
• Carolwood is focused on long-term investment opportunities. They have never sold an asset they acquired.

Background on Mike Kennedy (https://www.linkedin.com/in/m-kennedy/)

• Mike Kennedy previously served as CEO of RumbleOn, the nation’s largest powersports dealership group; and Vance & Hines, a leading manufacturer of high-performance aftermarket motorcycle exhaust systems and accessories.

• • At RumbleOn, he reshaped the company’s retail strategy and operations. He transformed its leadership team and organizational structure, positioning RumbleOn for the future.

• • At Vance & Hines, he led a marketing and brand overhaul and capital structure transformation, reigniting growth, while expanding gross margins.

• Prior to those roles, he spent 26 years at Harley-Davidson, ultimately serving as Vice President and Managing Director of Americas from 2010 to 2017.
  • During this time, he was responsible for the company’s $3.5B business, managing a network of 800 dealers and a team of 300. During his tenure, he oversaw strong revenue growth and enhanced the brand’s strategic partnerships in the region.

• He is a results-oriented leader, who has a proven track record of directing high-performing teams and developing strategies that engage customers and grow businesses.