Polaris Sells Majority Stake in Indian Motorcycle, Paving Way for Independent Growth
Polaris has announced that it will sell a majority stake in the legendary Indian Motorcycle brand to Los Angeles-based private equity firm Carolwood LP, marking a significant shift in the American motorcycle industry. The move signals a new chapter for Indian, a brand with over a century of heritage and a renewed surge in popularity.
A New Era for a Historic Brand
Indian Motorcycle, founded in 1901, has long been a symbol of American motorcycling. Polaris acquired the brand in 2011, investing heavily to revive its legacy and position it as a strong competitor to Harley-Davidson. Now, under Carolwood LP’s private equity ownership, Indian Motorcycle is set to operate as an independent company, poised for innovation and global expansion.
The transaction is expected to close in early 2026, transferring approximately 900 employees and key manufacturing operations in Iowa, Minnesota, and Switzerland to the new entity. Mike Kennedy, an industry veteran with experience at Harley-Davidson and Vance & Hines, will assume the role of CEO following the transition.
Why Polaris Made the Move
Polaris’ decision to sell a majority stake reflects its strategy to concentrate on its core powersports and off-road business. Motorcycles represented roughly 7% of Polaris’ total revenue last year, around $478 million, and have historically been a smaller segment of the company. By divesting Indian Motorcycle, Polaris expects to add $50 million annually to its earnings, approximately $1 per share, while maintaining a minor equity stake in the brand.
What’s Next for Indian Motorcycle
Carolwood LP has committed to supporting Indian Motorcycle’s independent growth while preserving its hallmark of American heritage, craftsmanship, and community. Core operations, service networks, and dealer support will remain intact, ensuring customer warranties and brand trust continue uninterrupted.
Industry analysts anticipate that this move could spark innovation, revitalize the premium motorcycle market, and increase competition with rivals like Harley-Davidson. With fresh leadership and new investment, Indian Motorcycle is well-positioned to explore new products and global opportunities in the coming years.
Key Points to Know
- Polaris sells a majority stake in Indian Motorcycle to Carolwood LP; deal expected to close in early 2026.
- Mike Kennedy, formerly with Harley-Davidson, to lead Indian as CEO.
- Polaris refocuses on off-road and powersports businesses while retaining a minor stake in Indian.
- Manufacturing, dealer networks, and customer service operations remain stable.
- Sale expected to boost Polaris’ annual earnings and pave the way for Indian’s independent growth.
This landmark transition marks an exciting chapter in American motorcycling, as Indian Motorcycle charts a course toward independence, innovation, and renewed prominence in the global market.
Polaris has announced that it will sell a majority stake in the legendary Indian Motorcycle brand to Los Angeles-based private equity firm Carolwood LP, marking a significant shift in the American motorcycle industry. The move signals a new chapter for Indian, a brand with over a century of heritage and a renewed surge in popularity.
A New Era for a Historic Brand
Indian Motorcycle, founded in 1901, has long been a symbol of American motorcycling. Polaris acquired the brand in 2011, investing heavily to revive its legacy and position it as a strong competitor to Harley-Davidson. Now, under Carolwood LP’s private equity ownership, Indian Motorcycle is set to operate as an independent company, poised for innovation and global expansion.
The transaction is expected to close in early 2026, transferring approximately 900 employees and key manufacturing operations in Iowa, Minnesota, and Switzerland to the new entity. Mike Kennedy, an industry veteran with experience at Harley-Davidson and Vance & Hines, will assume the role of CEO following the transition.
Why Polaris Made the Move
Polaris’ decision to sell a majority stake reflects its strategy to concentrate on its core powersports and off-road business. Motorcycles represented roughly 7% of Polaris’ total revenue last year, around $478 million, and have historically been a smaller segment of the company. By divesting Indian Motorcycle, Polaris expects to add $50 million annually to its earnings, approximately $1 per share, while maintaining a minor equity stake in the brand.
What’s Next for Indian Motorcycle
Carolwood LP has committed to supporting Indian Motorcycle’s independent growth while preserving its hallmark of American heritage, craftsmanship, and community. Core operations, service networks, and dealer support will remain intact, ensuring customer warranties and brand trust continue uninterrupted.
Industry analysts anticipate that this move could spark innovation, revitalize the premium motorcycle market, and increase competition with rivals like Harley-Davidson. With fresh leadership and new investment, Indian Motorcycle is well-positioned to explore new products and global opportunities in the coming years.
Key Points to Know
- Polaris sells a majority stake in Indian Motorcycle to Carolwood LP; deal expected to close in early 2026.
- Mike Kennedy, formerly with Harley-Davidson, to lead Indian as CEO.
- Polaris refocuses on off-road and powersports businesses while retaining a minor stake in Indian.
- Manufacturing, dealer networks, and customer service operations remain stable.
- Sale expected to boost Polaris’ annual earnings and pave the way for Indian’s independent growth.
This landmark transition marks an exciting chapter in American motorcycling, as Indian Motorcycle charts a course toward independence, innovation, and renewed prominence in the global market.
