On October 13, 2025, Polaris Inc. announced its decision to separate Indian Motorcycle from its portfolio and sell a majority stake to independent private‑equity firm Carolwood LP. The definitive agreement, signed at 4:10 p.m. ET, will see the transaction close in the first quarter of 2026. The move will transform Indian Motorcycle into a standalone company while Polaris retains a small equity position.
Financially, the deal is expected to add roughly $50 million to Polaris’ annualized adjusted EBITDA and lift adjusted earnings per share by about $1.00. Indian Motorcycle had generated $478 million in revenue—about 7 % of Polaris’ trailing‑12‑month sales—making the divestiture a significant portion of the company’s top line. The accretive impact reflects the higher margin profile of the off‑road vehicle business compared to the motorcycle segment.
Strategically, the separation allows Polaris to concentrate resources on its core off‑road, on‑road, and marine businesses, accelerating investment in innovation and dealer support. Indian Motorcycle will be led by former Harley‑Davidson executive Mike Kennedy, who will steer the brand’s growth as an independent entity. The transaction underscores Polaris’ focus on long‑term value creation amid a challenging powersports market.
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