Polaris separates Indian Motorcycle as standalone company
Polaris Inc. has announced that it will separate Indian Motorcycle into a standalone company. The decision marks a major shift in strategy for the Minnesota-based powersports giant, which has owned and revived the historic motorcycle brand since 2011.
Under the plan, private equity firm, Carolwood LP, will acquire a majority stake in Indian Motorcycle, while Polaris will retain a minority equity interest. The transaction, expected to close by the first quarter of 2026, and aims to give both companies greater focus and flexibility in pursuing their respective growth paths.
Polaris said the move will allow it to zero in on its core off-road, utility, and recreational vehicle businesses, while Indian Motorcycle gains the independence to accelerate innovation, expand its lineup, and strengthen its global presence.
Around 900 employees from Indian Motorcycle, including those at manufacturing facilities in Iowa and Minnesota, and a design center in Switzerland, will transfer to the new company. Veteran industry executive Mike Kennedy has been tapped to lead the standalone Indian Motorcycle as CEO.
Financially, Polaris expects the spin-off to be accretive to adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) by USD 50 million and to boost earnings per share by approximately USD 1.00.
Founded in 1901 and reborn under Polaris, Indian Motorcycle has spent the past decade reclaiming its place among the world’s premier motorcycle brands. With this separation, the storied marque is set to chart its own course, one that could define the next chapter of American motorcycling.
