Polaris selling Indian Motorcycle business to private equity group

Minnesota powersports vehicle maker Polaris is selling its Indian Motorcycle business to a California private equity firm.

Terms of the deal have not yet been released, but Polaris is expected to maintain a small stake.

“Polaris and Indian Motorcycle both stand to benefit from this deal” with Los Angeles-based Carolwood, said Polaris CEO Mike Speetzen in a news release.

Indian Motorcycle’s legacy goes back to 1901. Medina-based Polaris has owned the business since 2011 and is credited with reviving the brand.

Indian is now among the five largest sellers of motorcycles in the United States, behind giants like Kawasaki and Honda, and it’s the second-largest U.S. manufacturer of motorcycles behind Milwaukee-based Harley-Davidson.

For the 12 months ending June 30, the Indian Motorcycle business accounted for $478 million, or about 7%, of Polaris’ overall revenue.

It posted its first profit under Polaris ownership in 2023, and Polaris launched a new redesign of its most popular model, the Indian Scout, the following year.

“Indian Motorcycle is an iconic brand built on American heritage, craftsmanship, and most importantly, a community of riders,” said Andrew Shanfeld, principal at Carolwood, in the release. “We’re honored to help usher in its next chapter as an independent company.”

The new CEO of Indian Motorcycle will be Mike Kennedy, who was CEO of RumbleOn, the nation’s largest powersports dealership group. Kennedy also led aftermarket parts manufacturer Vance & Hines and served 26 years at Harley-Davidson in various capacities.

Polaris got into the motorcycle business in 1997 with its own lineup called Victory, which it discontinued to concentrate on Indian.

The Indian Scout, a mid-size cruiser, is the most popular bike in the U.S. for its class.

With the sale of Indian, 900 employees will transition from Polaris to Carolwood. The motorcycles are primarily made in Monticello, Minn., and Spirit Lake, Iowa. The business also has an industrial design center in Burgdorf, Switzerland, that will transfer to Carolwood.

Polaris’ three-wheeled Slingshot vehicle, which is part of the same segment, will remain with Polaris.