Polaris sells off Indian Motorcycle company to Carolwood LP
Polaris is spinning off Indian Motorcycle into an independent company, selling a majority stake to Carolwood LP as the century-old American brand gears up for its next chapter.
In a move that’s set to reshape the American motorcycle landscape, Polaris Inc. has announced that Indian Motorcycle will soon stand on its own two wheels as an independent company.
The Minnesota-based firm is selling a majority stake in the brand to Carolwood LP, a Los Angeles private equity outfit known for investing in established, heritage-heavy companies.
Indian Motorcycle accounted for around $478 million, or roughly 7 per cent of Polaris’ total revenue over the past year. Once the deal closes, expected in early 2026, Polaris says the sale will boost its adjusted earnings by about $50 million in annual EBITDA and $1.00 per share.
The company will hold onto a minority stake in the newly independent Indian Motorcycle but will otherwise let the brand run its own show. As Polaris CEO Mike Speetzen put it, the separation gives both sides room to breathe.
“Polaris and Indian Motorcycle both stand to benefit from this deal, which will enable each business to move faster, deliver innovation, and lean into our respective strengths,” said Speetzen. “For Polaris, it sharpens our focus on the areas with the strongest growth potential and allows us to accelerate investments where we can really make an impact.”
It’s a significant moment. Under Polaris’ ownership, Indian Motorcycle has transformed from a dormant name into a serious player in the modern market, taking the fight directly to Harley-Davidson with models like the Challenger, Scout, and Chief. Speetzen praised the work done under the company’s wing and said Indian now has the muscle to thrive solo.
“With its product range, global dealer network, and manufacturing capability, Indian Motorcycle is well positioned to succeed as a standalone company,” he added. “We were highly selective in finding a partner that believes in the brand’s future, and Carolwood fits that bill.”
Carolwood takes the reins at Indian Motorcycle
Carolwood LP was founded in 2014 and is best known for investing in high-profile, legacy-driven brands. Andrew Shanfeld, Principal at Carolwood, said the firm sees Indian Motorcycle as more than just a business opportunity.
“Indian Motorcycle is an iconic brand built on American heritage, craftsmanship, and a community of riders,” said Shanfeld. “We’re honoured to help usher in its next chapter as an independent company and to support its continued growth as a symbol of performance and pride.”
Carolwood has already tapped Mike Kennedy to lead the new company once the deal is finalised. Kennedy brings more than 30 years of motorcycle industry experience, having previously headed RumbleOn, Vance & Hines, and spent over two decades with Harley-Davidson.
“Indian Motorcycle has defined American motorcycling for over a century,” said Adam Rubin, also a Principal at Carolwood. “Mike Kennedy’s experience leading iconic performance brands makes him the right person to carry that legacy forward.”
What happens next
When the sale goes through, around 900 employees will move with the new company. Indian will retain its engineering, design, and manufacturing teams, including facilities in Spirit Lake, Iowa, Monticello, Minnesota, and its design and tech hub in Burgdorf, Switzerland.
For riders and dealers, it should be business as usual. Sales, service, and parts will continue without disruption as Indian transitions to independence. The brand will still sell its range of motorcycles and accessories through its global dealer network.
Polaris’ leadership shuffle
In the meantime, Mike Dougherty, Polaris’ long-serving President of On Road and International, will continue overseeing Indian Motorcycle until the transition is complete. Dougherty, who’s spent nearly 28 years with the company, has announced his intent to retire once the sale closes.
Speetzen credited Dougherty with growing Polaris’ international business from under $100 million in 2000 to over $1 billion today, and for helping Indian Motorcycle achieve the top spot in U.S. mid-size cruiser sales last year.
“Mike’s leadership and vision have shaped Polaris’ global success,” said Speetzen. “He’s known not just for results, but for the teams and culture he’s built. We wish him the best in retirement.”
A strong quarter amid big changes
Even with the Indian news dominating headlines, Polaris is still in good financial shape. The company expects third-quarter 2025 sales to land at the top end of its $1.6–1.8 billion guidance, with adjusted earnings per share between $0.31 and $0.41 — a notable jump from earlier expectations.
Speetzen pointed to stronger-than-expected shipments, improved operational efficiency, and double-digit growth in off-road vehicle (ORV) retail sales as key drivers behind the better results.
The full quarterly report is due October 28, 2025, when Polaris will share more about the transaction and its financial outlook.
Polaris’ decision to part ways with Indian Motorcycle might raise eyebrows, and it rightly should. In Polaris, Indian had a home in a global automotive and powersports brand. In Carolwood LP, it sits within an investment firm that seems to have its fingers in a lot of pies, from real estate to bagels.
For Polaris, the move frees up resources to focus on its core powersports lineup, while for Indian, it marks the beginning of a new chapter. We'll be closely watching to see how this transition goes.
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Simon (AKA Toad) has been working within the motorcycle industry for more than twelve years, and a member of the motorcyclist family since birth. Growing up around British-built single and twins, it was inevitable that a life on two wheels was on the cards, from a very early age!
