Polaris Blue
Polaris Inc. announced on October 13, 2025, its decision to separate Indian Motorcycle into a standalone entity and sell a majority stake to Carolwood LP, a private equity firm based in Los Angeles. This strategic move aims to sharpen the operational focus of both Polaris and Indian Motorcycle, allowing Polaris to concentrate its resources on areas with the greatest potential for profitable growth.
The transaction is expected to significantly impact Polaris’ financial outlook. Indian Motorcycle contributed approximately $478 million, or 7.0%, of Polaris’ total revenues for the twelve months ending June 30, 2025. Following the completion of the deal, anticipated in the first quarter of 2026, Polaris expects to see an increase in its adjusted EBITDA by around $50 million and an uplift in adjusted earnings per share by approximately $1.00.
Polaris Chief Executive Officer Mike Speetzen expressed confidence in the future of Indian Motorcycle under Carolwood’s ownership. He emphasized that the separation would allow both entities to pursue their respective market strengths more effectively. “This deal enables each business to move faster and deliver industry-leading innovation,” said Speetzen. He noted that Polaris would retain a minority equity position in Indian Motorcycle post-transaction.
Andrew Shanfeld, Principal at Carolwood, highlighted the significance of Indian Motorcycle as an iconic brand steeped in American heritage. “We’re honored to help usher in its next chapter as an independent company,” he stated. The firm aims to continue supporting Indian Motorcycle’s growth and legacy as a symbol of performance and pride.
In preparation for the transition, Carolwood has appointed Mike Kennedy as the CEO of the new Indian Motorcycle organization. Kennedy brings over 30 years of experience in the motorcycle industry, having held leadership positions at RumbleOn, Vance & Hines, and Harley-Davidson. His extensive background positions him well to guide Indian Motorcycle in its next stage of development.
As part of the deal, approximately 900 employees will transition to the new company, retaining essential roles including engineers and designers. Key manufacturing facilities located in Spirit Lake, Iowa, and Monticello, Minnesota, along with an industrial design and technology center in Burgdorf, Switzerland, will also be part of the new standalone business. Indian Motorcycle will continue to provide sales, service, and support to its dealers and customers throughout this transition.
Until the deal is finalized, Polaris President of On Road and International Mike Dougherty will oversee the On Road and International divisions, including Indian Motorcycle. Dougherty, who has a long-standing career with Polaris, has indicated his intention to retire once the transaction is complete. His leadership has significantly shaped Polaris’ international presence, expanding revenue from less than $100 million in 2000 to over $1 billion today.
Polaris is also preparing to release its third quarter 2025 financial results on October 28, 2025. Preliminary data suggests encouraging retail trends, with sales expected to reach the high end of the previously issued guidance range of $1.6 billion to $1.8 billion.
As Polaris ventures into this new chapter, the separation of Indian Motorcycle symbolizes a strategic pivot aimed at enhancing value for both companies and their stakeholders.
