Polaris Industries has agreed to sell its controlling stake in Indian Motorcycles to Los Angeles-based private equity firm Carolwood, spinning the 124-year-old brand back into an independent company for the first time since 2011.
The transaction, expected to officially close in the first quarter of 2026, ends Polaris’ full ownership of the motorcycle giant, while still allowing it to retain a ‘minority position.’
Financial terms surrounding the deal remain under wraps.
Polaris projects the sale will boost its annual adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) by roughly $50 million and add about $1 to adjusted earnings per share.
Indian generated $478 million in revenue over the 12-month period ending June 30, about 7% of Polaris’ total revenue, after posting its first profitable year under the parent company in 2023, per Motorcycle.com.
“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,” Polaris CEO Mike Speetzen said in a statement.
Carolwood, founded in 2014 by Andrew Shanfeld and Adam Rubin, has no prior powersports experience but manages investments in restaurant chains, sports media companies, and real estate.
However, incoming CEO Mike Kennedy, tapped by Carolwood, brings in more than three decades of experience in the motorcycle industry. Kennedy previously spent 26 years at Harley-Davidson, rising to vice president and managing director of the American market, before leading aftermarket exhaust maker Vance & Hines and later RumbleOn—the nation’s largest powersports dealer network.
Kennedy joined Carolwood as an operating partner in May, suggesting the company had been eyeing the Indian acquisition for months.
Roughly 900 employees will reportedly transfer with the brand, including engineers, designers, and factory workers at plants in Iowa and Minnesota. Indian’s design and technology center in Burgdorf, Switzerland, also remains in place with the new purchase. Dealer support, parts sales, and apparel sales will also allegedly continue uninterrupted, though the Indian supply chain will technically detach from Polaris.
Mike Dougherty, Polaris’ president of on-road and international, who has overseen Indian since the 2011 acquisition, will retire upon closing after 28 years with the company.
The separation between Indian and Polaris comes at an interesting, somewhat turbulent time in American motorcycling.
As The Dallas Express reported in August, arch-rival Harley-Davidson named former TopGolf CEO Artie Starrs as its new leader after dismantling its DEI programs amid viral consumer backlash. The brand has had its hands full with rebuilding trust with consumers and establishing its identity, while also battling a seemingly consistent drop in overall bike sales.
Indian’s newfound independence could intensify the rivalry in the motorcycle market.
Freed from Polaris’ off-road priorities, the brand gains flexibility to chase new global growth, particularly in certain cruiser models where it already claims top “U.S. shares.”
Speetzen would go on to praise the Indian brand’s resilience in his recent statement, saying, “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.”