This is a developing story, but in a shocking mid-day announcement, Polaris has announced it intends to not only spin off its Indian Motorcycle business into its own separate company, but that it then intends to sell the legacy American motorcycle brand to Carolwood LP, a private equity group, who has put former Vance & Hines CEO Mike Kennedy, who also worked for Harley-Davidson for two decades, in charge of the company.
In a press release sent out moments ago, Polaris CEO Mike Speetzen stated, "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. 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. It also will unlock greater long-term value for Polaris and our shareholders, with immediate value creation that we expect will become increasingly meaningful over time."
The executive added, "Under Polaris’ ownership and investment, Indian Motorcycle has been re-established as a celebrated brand and major player in the global motorcycle market. 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. 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. We are confident and committed to making this a seamless transition for Indian Motorcycle dealers, customers and employees."
