Polaris Spins Off Indian Motorcycle, Sells Majority Stake to Carolwood LP
Polaris Inc. is undergoing a significant transition by spinning off Indian Motorcycle, a storied brand within the motorcycle industry. The Minneapolis-based company has finalized an agreement to sell a majority interest in Indian Motorcycle to Carolwood LP, a private equity firm established in 2014 and headquartered in Los Angeles, California.
Details of the Spin-Off
This strategic move aims to sharpen operational focus for both Polaris and Indian Motorcycle. Polaris anticipates that the separation will contribute positively to its financial metrics. Specifically, the transaction is projected to enhance adjusted EBITDA by approximately $50 million and increase adjusted earnings per share by around $1.00, once fully realized.
Financial Implications
For the fiscal year ending June 30, 2025, Indian Motorcycle accounted for roughly $478 million, or 7.0%, of Polaris’ overall revenue. The completion of the sale is expected in the first quarter of 2026, pending fulfillment of standard closing conditions.
- Projected financial benefits:
- Adjusted EBITDA: +$50 million
- Adjusted EPS: +$1.00
- Indian Motorcycle’s revenue contribution: $478 million (7.0% of total Polaris revenue)
Future Leadership and Structure
Mike Kennedy has been appointed as the CEO of the newly independent Indian Motorcycle post-sale. Kennedy brings over 30 years of experience in the motorcycle industry, having held significant roles at RumbleOn and Vance & Hines, along with a long tenure at Harley-Davidson.
- New CEO: Mike Kennedy
- Industry experience: Over 30 years
Approximately 900 employees will transition to the new Indian Motorcycle firm while retaining their roles in engineering, design, and manufacturing. Key manufacturing sites in Spirit Lake, Iowa, and Monticello, Minnesota, will also support the standalone company.
Polaris Leadership Transition
Mike Dougherty, the President of On Road and International at Polaris, intends to retire following the transaction’s completion. Dougherty has played a crucial role in expanding Polaris’ international presence, significantly increasing revenue over nearly three decades.
Looking Ahead
Polaris is poised to report its preliminary third-quarter earnings for 2025 on October 28, with positive retail trends anticipated. The company’s share gains in the off-road vehicle (ORV) market and other growth metrics are expected to exceed previous estimates.
- Expected sales range for Q3 2025: $1.6 billion to $1.8 billion
- Expected adjusted EPS range: $0.31 to $0.41
This transformative step is set to unlock long-term value for Polaris and enhance Indian Motorcycle’s operational agility and market position under Carolwood’s management.
