Polaris sells majority stake in Indian, making it a separate company

Parent company Polaris announced today that it is selling a majority stake in the motorcycle manufacturer to a Los Angeles-based private equity firm. The deal is expected to close in the first quarter of 2026 and the new, independent Indian will be led by CEO Mike Kennedy, a former CEO at both RumbleOn, the nation's largest powersports dealership group, and Vance & Hines, the aftermarket parts and accessories manufacturer, as well as a long-time employee at Harley-Davidson.

Purchasing the controlling stake in the company is Carolwood LP, which was founded in 2014. Polaris "will maintain a small equity position in the business," according to the news release from Polaris. Polaris said the transaction would add about $50 million to its earnings but additional terms of the deal have not yet been disclosed.

For Indian customers and most employees, Polaris said business will carry on as usual. The new Indian will continue selling motorcycles, parts, and accessories through its 600 current dealers. The sale includes Indian's manufacturing facilities in Spirit Lake, Iowa, and Monticello, Minnesota, as well as its industrial design and technology center in Burgdorf, Switzerland. About 900 employees will move to the new company, with "the majority of its team" being retained, according to Polaris.

Except for retaining a small stake in Indian, the sale marks the end of Polaris' dalliance in the motorcycle business. The company, which has mostly focused on off-road vehicles over the years, first formed the Victory brand of motorcycles in 1997, building heavyweight cruisers aimed directly at Harley-Davidson. In 2011, Polaris acquired the Indian brand and in 2017 the company closed down the Victory line to focus all its efforts on Indian.

It's yet another change in ownership for the Indian brand, which goes back to 1901, two years before Harley-Davidson was founded. The original company, founded in Springfield, Massachusetts, was once the largest motorcycle manufacturer in the world. It went out of business in 1953 and the brand changed hands several times thereafter. For years, the Indian name was slapped on scooters, mopeds, and other small imported two-wheelers. In 1999, a company was formed to build Scouts and Chiefs in the Indian tradition, using S&S engines, but it only lasted four years. The recent run under Polaris' ownership has given the brand the most stability it has seen since the original company went out of business more than 70 years ago.

Under Polaris, Indian provided a domestic challenger to Harley-Davidson, but motorcycles have always been a small part of Polaris' business portfolio. The company said Indian accounted for 7.0% of Polaris' revenues over the 12-month period ending June 30, 2025.

“Polaris and Indian Motorcycle both stand to benefit from this deal, which will enable each business to move faster, deliver industry-leading innovation, and lean further into our respective market strengths,” said Polaris CEO Mike Speetzen. “For Polaris, the sale will further strengthen our focus on the areas of our portfolio that offer the strongest growth potential and allow us to accelerate investments in key initiatives and create wins with customers and dealers.”

"With its current product portfolio, global dealer network, category expertise and manufacturing resources, the business is well positioned to succeed as a standalone company with a dedicated focus on its industry," Speetzen added. "We were highly intentional and selective in our search and planning efforts for Indian Motorcycle’s next chapter of growth. In Carolwood, Indian Motorcycle has a partner that believes in building on the business’ current momentum and supporting its next stage of success."

Reportedly, Carolwood has never sold any of the assets it has acquired.