Polaris Inc. announced plans to separate Indian Motorcycle into a standalone company, selling a majority stake to Los Angeles–based private equity firm Carolwood LP. The move marks a major shift for Polaris, which relaunched the historic brand in 2011 and helped it reclaim a strong presence in the global motorcycle market.

Under the agreement, Polaris will retain a minority equity position while Carolwood assumes majority ownership. Indian Motorcycle generated about $478 million in revenue, or 7% of Polaris’ total, for the 12 months ended June 30, 2025. The transaction is expected to close in early 2026, pending customary approvals.

Polaris expects the sale to be accretive to adjusted EBITDA by roughly $50 million and to boost adjusted earnings per share by $1.00 annually.

“Both Polaris and Indian Motorcycle stand to benefit from this deal,” says Polaris CEO Mike Speetzen. “It will allow each business to move faster and focus on areas of greatest opportunity—creating wins for customers, dealers, and shareholders.”

Speetzen praised the brand’s revival under Polaris, adding that Carolwood’s backing would give Indian “the dedicated focus and resources needed for its next stage of growth.”

Carolwood Principal Andrew Shanfeld called Indian Motorcycle “an iconic American brand built on craftsmanship and community,” adding that the firm aims to “support its continued growth as an independent company.”

When the transaction closes, Mike Kennedy — a 30-year motorcycle industry veteran — will become CEO of Indian Motorcycle. Kennedy’s career includes leadership roles as CEO of RumbleOn, president and CEO of Vance & Hines, and 26 years with Harley-Davidson.