In a notable move, Polaris Inc. announced that Indian Motorcycle will be spun off and continue as an independent company. The American motorcycle manufacturer sells a majority stake to the investment company Carolwood LP, based in Los Angeles. The deal is expected to close in the first quarter of 2026.
According to Polaris CEO Mike Speetzen, the sale is “a logical next step” for both parties. “This deal allows Polaris and Indian Motorcycle to focus on their own strengths and growth opportunities,” said Speetzen. “For Polaris, it means we can focus our resources on the segments with the greatest profit potential. Indian, in turn, will have the space to move and innovate faster as an independent brand.”
Indian Motorcycle, which generated approximately $478 million in sales over the past 12 months (7% of total Polaris sales), will operate independently following the acquisition. Polaris retains a small interest in the brand, but is no longer involved in day-to-day management.
The acquisition is expected to be financially beneficial for Polaris, with the company expecting an increase in adjusted EBITDA of approximately $50 million and an increase in earnings of approximately $1.00 per share.
Carolwood takes the wheel
The new owner, Carolwood LP, was founded in 2014 and is known for investing in established brands with growth potential. According to Carolwood partner Andrew Shanfeld, Indian Motorcycle is “an American icon that exudes craftsmanship, performance and pride.”
Carolwood has appointed Mike Kennedy as future CEO of the new Indian Motorcycle. Kennedy is a veteran of the motorcycle industry, having previously led RumbleOn and Vance & Hines, and spent more than 25 years at Harley-Davidson. Carolwood seems to be aiming for experience and credibility within American motorcycle culture.
What does this mean for employees and dealers?
More than 900 Indian employees will transfer to the new company, including engineers, designers and production teams. The production facilities in Spirit Lake (Iowa) and Monticello (Minnesota) will be retained, as will the design and technology center in Burgdorf, Switzerland. The existing global dealer network also remains active.
Little will change for customers for the time being: Indian Motorcycle will continue to sell motorcycles, parts, clothing and accessories through existing channels, and will continue to provide full service and warranty.
Polaris shifts focus – and says goodbye to a veteran
Within Polaris, the sale also means a leadership change. Mike Dougherty, currently president of On Road & International, announced his retirement once the deal is completed. Dougherty played a key role in Polaris’ international expansion, growing sales outside North America from less than $100 million in 2000 to more than $1 billion today.
“Mike’s leadership has shaped our international growth and our On Road division. Under his leadership, Indian Motorcycle achieved the number one market share in the US for mid-priced cruisers last year.”
Polaris continues to grow beyond Indian
Despite retiring from Indian, Polaris appears to be in top financial shape. The manufacturer expects third-quarter 2025 results to be at the high end of forecast — between $1.6 billion and $1.8 billion in revenue, with earnings per share of $0.31 to $0.41. That’s better than expected, thanks to strong off-road vehicle sales and improved operational efficiency.
With the sale of Indian Motorcycle, Polaris marks a new chapter in its history. The company will now focus entirely on its core activities: ATVs, side-by-sides, snowmobiles and marine products.
For Indian, this actually means a return to independence — something many fans will likely welcome with pride.
Or as Shanfeld from Carolwood puts it:
– Thanks for information from Motorfreaks.