Indian Motorcycle Rides Solo After Polaris Sells Majority Stake

MINNEAPOLIS, MN – February 02, 2026 – Polaris Inc. has completed the separation of Indian Motorcycle, America's first motorcycle company, selling a majority stake to the Los Angeles-based private equity firm Carolwood LP. The move marks a new, independent chapter for the historic brand and a significant strategic pivot for the powersports giant that resurrected it.

In a deal announced today, Indian Motorcycle will now operate as a standalone business under the ownership of Carolwood. Polaris, which acquired the dormant brand in 2011 and successfully revived it into a major competitor in the heavyweight motorcycle market, will retain a small equity position. The transaction concludes a 15-year chapter for Polaris and signals a sharpened focus on its core off-road, snow, and marine segments.

"The successful completion of this transaction is a great outcome for all," said Polaris Chief Executive Officer Mike Speetzen in a statement. "Separating Indian Motorcycle enables Polaris to sharpen our strategic and operating focus on our core growth businesses, while driving immediate value creation for shareholders."

A Strategic Reset for Polaris

The divestiture is a calculated move by Polaris to streamline its portfolio and double down on its most profitable ventures. While Indian Motorcycle was a story of successful brand revitalization, its financial contribution was relatively modest within the larger Polaris empire. For the twelve months ending June 30, 2025, Indian accounted for approximately $478 million, or about 7.0%, of Polaris's total revenue.

By shedding the motorcycle division, Polaris expects a significant positive impact on its bottom line. The company anticipates the deal will be accretive to its annualized adjusted EBITDA by approximately $50 million and to its adjusted earnings per share by around $1.00. This financial upside underscores the strategic rationale: reallocating capital and management attention to high-margin product lines like the RANGER and RZR off-road vehicles, Bennington pontoons, and its snowmobile brands.

This move allows the Minnesota-based company to concentrate its resources on defending and expanding its market leadership in the broader powersports arena, a strategy that investors are likely to view favorably. The transaction was advised by Goldman Sachs & Co. LLC and the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP.

Indian's New Horizon Under Private Equity

For Indian Motorcycle, the future now lies with Carolwood LP, a firm with a unique investment philosophy. Founded in 2014 by Andrew Shanfeld and Adam Rubin, Carolwood specializes in acquiring assets from larger corporations that it believes are ready to thrive independently. The firm prides itself on a long-term investment horizon, claiming it has never sold a company it has acquired, a notable departure from the typical private equity playbook.

Carolwood's portfolio is diverse, with investments ranging from esports company Bitkraft and content creator Jomboy Media to consumer brands like Zab's Hot Sauce. Their interest in Indian Motorcycle represents a significant bet on the enduring power of a legacy American brand. The firm has expressed a deep respect for Indian's 125-year heritage and its passionate community of riders, stating its mission is to honor that tradition while steering the company toward new growth opportunities.

In a clear sign of its intentions, Carolwood has appointed industry veteran Mike Kennedy as the new CEO of the standalone Indian Motorcycle company. Kennedy brings over three decades of experience, including significant leadership roles at chief competitor Harley-Davidson, as well as Vance & Hines and RumbleOn. His appointment provides immediate industry credibility and suggests a strategy rooted in deep market knowledge.

Leadership and Operational Transition

The separation is more than a financial transaction; it involves a complex operational restructuring. Approximately 900 employees will transition from Polaris to the new Indian Motorcycle entity. Crucially, the deal ensures continuity in the brand's core functions. Indian will retain its primary manufacturing facilities in Spirit Lake, Iowa, and Monticello, Minnesota, along with its industrial design and technology center in Burgdorf, Switzerland.

This continuity means the current team of engineers, designers, and manufacturing staff responsible for the brand's recent success will remain in place, which should reassure loyal customers and dealers. However, the transition is not without disruption. The Osceola, Wisconsin plant, which produced engines and other key components for Indian, is slated for closure by the end of the year, a move that will affect around 200 employees.

Engine production will be consolidated and relocated to the Spirit Lake facility, a logical step for an independent company seeking to control its core manufacturing processes under one roof. While strategically sound for the new Indian Motorcycle, the closure highlights the real-world impacts that accompany major corporate restructuring.

The Road Ahead in a Competitive Market

The rebirth of Indian Motorcycle as an independent, private equity-backed entity sets the stage for a new dynamic in the heavyweight motorcycle market. With a dedicated leadership team and the potential for fresh capital injection from Carolwood, Indian could become an even more formidable competitor to Harley-Davidson and other global brands.

The appointment of Mike Kennedy as CEO is particularly telling, bringing a wealth of competitive insight directly from his time at Harley-Davidson. The industry will be watching closely for shifts in brand strategy, product development, and marketing as Indian charts its own course.

Private equity ownership always brings a mix of opportunity and apprehension. While it can provide the autonomy and resources for a brand to flourish, it also brings intense pressure for financial returns. The key question for enthusiasts and industry observers is how Carolwood will balance the preservation of Indian's iconic soul with the need to drive growth and profitability. The coming seasons will reveal whether this new partnership can successfully navigate the open road, balancing the soul of a historic brand with the strategic demands of its new financial stewards.