Polaris Inc. has announced a strategic move to separate its Indian Motorcycle division into an independent company, selling a majority stake to Carolwood LP. This decision, revealed on October 13, 2025, is expected to enhance operational focus for both Polaris and Indian Motorcycle, allowing each entity to better pursue profitable growth opportunities.
The transaction, which is anticipated to close in the first quarter of 2026, is projected to be beneficial for Polaris’ financial performance. Specifically, it is expected to increase annualized adjusted EBITDA by approximately $50 million and adjusted earnings per share by about $1.00. Indian Motorcycle accounted for around $478 million, or 7.0% of Polaris’ revenues in the twelve months ending June 30, 2025.
Polaris Chief Executive Officer Mike Speetzen expressed optimism regarding the deal, stating, “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.” The separation allows Polaris to concentrate on areas within its portfolio that offer the strongest growth potential while unlocking long-term value for shareholders.
Indian Motorcycle has established itself as a significant player in the global motorcycle market under Polaris’ ownership. Speetzen noted, “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.”
After the transaction, Polaris will retain a minority equity position in Indian Motorcycle. The company aims for a seamless transition for dealers, customers, and employees, which includes the retention of approximately 900 employees who will move to the new entity. This includes engineers, designers, and manufacturing personnel based at facilities in Spirit Lake, Iowa, and Monticello, Minnesota, along with the industrial design and technology center in Burgdorf, Switzerland.
Indian Motorcycle’s future leadership will be under the guidance of Mike Kennedy, who has been appointed CEO of the new organization. Kennedy brings over three decades of experience in the motorcycle industry, having previously held leadership positions at RumbleOn and Vance & Hines, as well as at Harley-Davidson.
Carolwood Principal Andrew Shanfeld remarked on the significance of Indian Motorcycle, stating, “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.” The firm specializes in acquiring iconic brands with potential for substantial growth, and Shanfeld emphasized that Indian Motorcycle aligns perfectly with this mission.
In preparation for the transition, Polaris President of On Road and International Mike Dougherty will continue to oversee the business until the deal’s completion. Dougherty has announced his intention to retire following the transaction, capping a notable 28-year career at Polaris. Speetzen praised Dougherty’s contributions, highlighting his role in expanding Polaris’ international operations significantly over the years.
As part of its ongoing operations, Polaris is set to release its third-quarter results for 2025 on October 28, when additional details regarding the transaction and performance metrics will be provided. Preliminary estimates indicate encouraging retail trends, with expectations for third-quarter sales at the high end of the previously issued guidance range of $1.6 billion to $1.8 billion.
Goldman Sachs & Co. LLC is serving as the financial advisor for Polaris, while Paul, Weiss, Rifkind, Wharton & Garrison LLP provides legal counsel. Carolwood LP is advised by Sheppard, Mullin, Richter & Hampton LLP, along with RSM, Alliant, and Finnea Group.
This strategic separation reflects Polaris’ commitment to enhancing operational efficiencies and focusing on growth areas, while also providing Indian Motorcycle the independence needed to thrive in the competitive motorcycle market.
