Indian Motorcycle

Polaris to Sell Indian Motorcycle Majority Stake and Separate It into a Private Equity Owned Standalone Business Unit

 

There had been rumors (strong rumors), that Polaris Inc. had Indian Motorcycles up for sale for most of this year. The company has now announced that it is to "separate Indian Motorcycle from its portfolio and into a standalone business."

Unlike when the last three Indian Motorcycle sales took place, manufacturing will remain at its present facility this time - at Spirit Lake, Iowa.

Polaris has entered into a definitive agreement to sell a majority stake in Indian Motorcycle to Carolwood LP, an independent private equity firm founded in 2014 and headquartered in Los Angeles, California. Indian Motorcycle contributed approximately $478m, or 7.0%, of Polaris' revenues for the trailing twelve-month period ended June 30, 2025.

Upon close, the transaction is expected to add to Polaris' annualized adjusted EBITDA by approximately $50m and to adjusted earnings per share ("EPS") by some $1.00. The close of the transaction is expected to occur in the first quarter of 2026, subject to the satisfaction or waiver of customary closing conditions.

The company statement went to state that "Polaris is confident in Indian Motorcycle's future success under Carolwood ownership and will maintain a small equity position in the Business after the transaction closes." Additional terms of the deal were not disclosed.

"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," said Polaris Chief Executive Officer Mike Speetzen.

"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 will also unlock greater long-term value for Polaris and our shareholders, with immediate value creation that we expect will become increasingly meaningful over time."

Speetzen continued: "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."

Polaris' decision to sell Indian Motorcycle comes not long after the brand finally transitioned into profit. According to Polaris CEO Mike Speetzen, Indian Motorcycle achieved the Number One market share spot position in the United States for mid-size cruisers in 2024 - not exactly an over-populated market segment though! 

Speetzen went on to state that "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."

For the new owners, Andrew Shanfield, a principal at Carolwood is quoted as stating that "Indian Motorcycle is an iconic brand built on American heritage, craftsmanship, and most importantly, a community of riders. We're honored to help usher in its next chapter as an independent company and to support its continued growth as a symbol of performance and pride. At Carolwood, we target iconic brands that we can passionately impact. Indian Motorcycle allows us to do just that."

Until the transaction closes, Polaris President of On Road and International Mike Dougherty will continue to lead the On Road and International businesses, including Indian Motorcycle, at Polaris. Over the next several months, he will help shepherd Indian Motorcycle in its transition to becoming a standalone company. Dougherty, with a distinguished nearly 28-year career with Polaris, has announced his intent to retire upon the closing of the transaction.

Speetzen commented: "During his tenure with Polaris, Mike's passion, tenacity and guidance has seen our international revenue grow from under $100m to over $1bn today, with a direct presence in more than fifteen countries. Indian Motorcycle achieved the No. 1 market share position in the United States for mid-size cruisers in 2024."

Commenting on preliminary Third Quarter results (due for release on October 28), Speetzen said "as we prepare to report our third quarter results, we're encouraged by improving retail trends with ORV ex-Youth up low double digits and continued strong share gains in ORV.

"Based on preliminary data, we expect third quarter sales to be at the high end of our previously issued guidance range of $1.6bn to $1.8bn. We anticipate third quarter adjusted EPS to be in the range of $0.31 to $0.41, which is meaningfully higher than our original expectations, driven by higher-than-expected shipments, strong cost management and ongoing progress within our operational efficiency initiatives."

Former H-D, V&H and RumbleOn/Ride Now executive Mike Kennedy will take over as Indian Motorcycle CEO when the deal completes in 2026.

As a part of the deal, approximately 900 employees will transition as a part of the new Indian Motorcycle Company. Indian Motorcycle will retain the majority of its team, including engineers, designers and staff, along with manufacturing resources.

The manufacturing facilities in Spirit Lake, Iowa, and Monticello, Minn., as well as the industrial design and technology center in Burgdorf, Switzerland, will transition to the new standalone motorcycle company as a part of the deal.

Indian Motorcycle will continue to provide sales, service, and support for dealers and customers throughout this transition. After the sale is finalized, Indian Motorcycle will operate independently of Polaris and continue selling motorcycles and parts, garments and accessories (PG&A) and providing service through its global Indian Motorcycle dealer network.

Indian Motorcycle was by far the major slice of Polaris' On-Road segment and the position of the under-performing Slingshot 'reverse-trike' roadster in a re-calibrated, post-Indian Motorcycles operations landscape is now looking even less certain that it has done of late.

 

Comment 

Within hours of the announcement Polaris' share price jumped on the news. However, there also were analyst opinions being aired suggesting that, at present, without something like this deal Polaris might be otherwise struggling to sustain the kind of levels of shareholder returns that would be critical mass for its capital requirements.

There were also suggestions that while this may be a short-term fix (at best) it could be one that sees Polaris exit a segment in which it is doing well at this time. One in which it has been judged to be in a position to continue to make profitable progress.

The change in ownership marks a return to gainful motorcycle industry employ for former 26-year Harley veteran, Vance & Hines President, and RumbleOn CEO Mike Kennedy as CEO of the newly independent Indian Motorcycle organization once the deal closes – bringing Kennedy into toe-to-toe competition with his 'alma mater'.

Kennedy is highly regarded as a motorcycle industry executive through and through, one with international experience and a broad market perspective. Some had even suggested he could have been a candidate for the Harley CEO vacancy, but this is a career move that brings only positive baggage.

Carolwood will be the fourth owner of Indian Motorcycle in the 26 years since Gilroy, California based Ray Sotelo, of South County Motorcycles fame/infamy used his subsequently 1995 founded California Motorcycle Company (CMC) - a custom motorcycle building business - as an established manufacturing operation to restart Indian branded production in 1999.

CMC was one of nine companies that reversed into Indian Motorcycle Company of America (IMCOA), a holding company in which rights to the dormant Indian Motorcycle brand name had been consolidated after 46 years of competing and ultimately fruitless ownerships.

All attempts to return the Indian name to sustainable production had failed after the original Springfield, Massachusetts Indian motorcycle factory (founded first as a bicycle brand by George Hendee in 1897) entered bankruptcy in 1953 after 52 years of continuous production.

Ultimately, Sotelo ran into difficulties, and his 'Gilroy Indian' operation was acquired by Stephen Julius of Chris Craft revival fame in 2006 - with production moved to King's Mountain, NC. In turn, Polaris Industries acquired the brand and all rights in 2011, moving production to Spirit Lake, Iowa - where the new owners will continue production under new CEO Mike Kennedy.

News Briefs

Brand profile maintenance is like painting the Golden Gate Bridge - the job is never finished. It isn't designed to be. If you stop, rust sets in and negative speculation quickly takes control of your balance sheet. If you think keeping your brand identity and profile alive is expensive, try cheap! - Yeldarb Nibor, 2008.

LeMans Corporation (Drag Specialties and Parts Unlimited) is returning to AIMExpo for the show's 2026 debut in Anaheim, California, January 7-9 at the Anaheim Convention Center. LeMans will sponsor free coffee for attendees, offer exclusive dealer incentives, and anchor its exhibit with the iconic Drag Specialties semi. This year's event will also coincide with the kickoff of the Monster Energy AMA Supercross season at nearby Angel Stadium. 

Newly anointed Harley CEO Artie Starrs clearly knew he was in the frame some weeks before the news was announced formerly. He signed up to do Riding Academy training at Maverick Harley-Davidson in Dallas in May this year - while the whole H Partners farrago was still underway. He reportedly placed an order for a 2025 117" M8 Heritage Classic shortly before the August 4 announcement of his appointment, collecting the bike on August 9.

The Harley-Davidson, Inc. (NYSE: HOG) Board of Directors has approved a cash dividend of $0.18 per share for the third quarter of 2025. The dividend is payable September 24 to the shareholders of record of the Company's common stock as of September 10, 2025.

The AMA's Vintage Motorcycle Days (VMD) is slated for a return to its usual Mid-Ohio Sports Car Course in Lexington, Ohio on July 24-26, 2026; vintagemotorcycledays.com

Former MAG, S&S, Bitubo and Race Winning Brands man David Zemla has signed on with Beaverton, Oregon based SW-Motech USA, the North American HQ for the German luggage and touring accessories manufacturer. All SW-Motech products are made in Europe in its own facilities. Recent news also includes the appointment of Parts Canada as distributor there. SW-M products are also available through Parts Unlimited and Drag Specialties in USA and Parts Europe in Germany; www.sw-motech.us

Drag Specialties has a new Central Ohio area Sales Rep Jack Johnson joins the North East Region team following several years of parts sales experience on the dealer level as well as over 10 years of riding expertise, on Harleys and dirt bikes.

H-D has confirmed the successful conclusion of its 'Strategic Partnership' with investors KKR and PIMCO with the Completion of Sale of Residual Interests in Securitized Consumer Loan Receivables. The strategy is designed to reduce the amount of capital that is required by HDFS to fund its loan book and remove debt from the H-D balance sheet. The deal has raised a pretty meagre $230m through sale of residual interests in certain securitized consumer loan receivables at a premium to par. The residual interests sold represented aggregate retail loan receivables of approximately $2bn and related debt of approximately $1.8bn at June 30, 2025.

Finnish E-bike manufacturer Verge Motorcycles has expanded its U.S. retail presence with a new retail showroom inside the Bike Shed Moto Co. in downtown Los Angeles. This marks Verge's first major retail footprint in Southern California. "Expanding our retail presence in the USA, especially with Bike Shed Moto Co. in a dynamic market like Los Angeles, is a significant step for Verge. Customers will now be able to see, feel, and experience our bikes in an authentic environment that reflects our shared passion for motorcycling," says Pekka Parnanen of Verge Motorcycles. BSMC LA is located at 1580 Industrial Street, LA; www. bikeshedmoto.com, www.vergemotorcycles.com

Having made its name in the 1950s with snowmobiles, 2025 sees Polaris celebrate 40 years in the ATV market - initially with the three-wheel Scrambler before the four-wheel Trail Boss paved the way for the 4×6 Big Boss in 1989/PSB

Bitubo

Bitubo Adds Turn 14 

Italian performance shock absorber and front fork cartridge kit manufacturer Bitubo Race Suspension products are now available to dealers in the United States who buy from Turn14 Distribution.

"This partnership makes Bitubo's race-proven Italian suspension technology widely available to U.S. dealers and riders, with T14 now stocking a broad range of popular Bitubo applications for street, track, and powersports markets. 

"Dealers can leverage Turn14's advanced logistics and service to get Bitubo products quickly into their customers' hands." Founded in Italy in 1963, Bitubo is one of the most respected suspension manufacturers in Italy, with an established reputation for "engineering and manufacturing quality, delivering precision, control, and performance - trusted by riders and race teams worldwide."

www.bitubo.com

Lyndall Brakes

Lyndall Brakes - "Expansion in all Directions"

San Marcos, Texas based Lyndall Brakes have announced that they have embarked on an expansion and growth program that has already seen the 27-year-old motorsport brake company add one outside salesman in 2023, another in 2024, and an inside sales and sales support person this year to help handle the new customers they are generating.

Now, the family-owned business has added a marketing department "to help support the sales team and focus the company's efforts on telling the world why Lyndall Brakes are worth the stop."

The business started in California, in the hills of southern California out of CEO Paul Kittrell's parent's garage and, a familiar tale in the motorcycle industry, it all started from Paul's personal need for better motorcycle brakes. 

Over the years Lyndall Racing Brakes, LLC has expanded its product lines to include rotors, sprockets, calipers, brake pads and lines, wheels, bolts and a UTV/ATV line of rotors and pads -with multiple design and utility patents secured.

Lyndall touring perimeter mounted rotors

In 2018, Lyndall Brakes opened its first satellite warehouse in Texas to shorten shipping times across the US. Mid-year of 2019 saw Paul make a pivotal decision to move the headquarters to Texas for a centralized US home. 

By 2021 Lyndall had purchased a state-of-the-art warehouse in the hill country of Texas on 20 acres, with plenty of room for further expansion. Adding outside sales in 2023 to help support the East Coast region, then in 2024 adding a West Coast sales rep and an inside sales associate created a critical mass for the sales department that company hadn't had before.

"The next logical move was this year's marketing arm to facilitate getting the word out about all things Lyndall," said Paul. As a result, Lyndall Brakes is now a 10-person team. "We realized the things most often not done in our busy week were marketing efforts," states Lyndall CFO Jennifer Thomas.

"Each marketing meeting got longer and longer and none of the core team had any more room on their schedules. Something had to change. Marketing is a very important component in any business [growing and otherwise] but when you get as large as we have, you need a team focused on following all the opportunities and checking all the boxes".

"Whether it is finding finishes locally or sourcing materials abroad this company is on the move," says Paul. "Future growth is still anticipated in 2025 and beyond we add another full-time warehouse employee and additional accounting and human resources capacity before the year ends.

"Dealers expect and need regular contact and as we step up our dealer messaging with multi-platform communications and resources, we intend to bring Lyndall to the premier market status that our product range has always warranted."

www.lyndallbrakes.com

 

Drag Specialties

Drag Specialties - Additions

Front Axle Kit

Featuring bright chrome finish on the axle and hardware, this Drag Specialties front axle kit is machined from chrome-moly steel and includes axle, spacers and hardware.

Frame Mounted Heat Deflectors

Deigned to deflect direct heat away from the rider to improve comfort, these deflectors are easy to install with included hardware and mount to the frame just under the front of the seat. They are made from tough plastic for durability and come in a black finish. They are available for '08-'17 Softail models (except FXCW/C, FXSB/SE and FXSE (they replace OEM part #29200008A) and sold in pairs.

Short Lever Kits

Shorter than OEM levers, these 2.5" length custom levers feature die cast aluminum construction and are available in chrome or matte black. Sold in pairs, they include anti-rattle clip and clutch lever pivot bushings. Available for '24 FLHTK/FLTRK '21-'25 FLHRXS, '21-'23 FLHT/FLHX/FLHR/FLTR (except '23 FLHXSE/FLTRXSE) and '21-'25 FLHTCUTG/FLRT/ FLTRT. 

Tour Pak Filler Pads

These Tour-Pak filler pads from Drag Specialties Seats work with Harley-Davidson King Tour-Paks and Drag Specialties Tour Box Designed to fill the open area between the seat and tour box, the pads feature automotive-grade vinyl covering and mount to the stock holes on the tour box. They are available for standard or relocated tour boxes for '14-'25 Touring models with King-style tour boxes. 

DRAG SPECIALTIES

www.dragspecialties.com

Feuling Parts

Piston Cooling Jet Pressure Tester

Feuling's pressure test tool for assembled engine cases is a "must" for any M8 or Twin Cam builder according to CEO and 'Guru of Go' Luke Leatherman.

"It allows builders to test the piston cooling jets while installed in the engine case, even with the cylinders on, to ensure proper operation."

Leaking or prematurely releasing piston cooling jets can cause high engine case oil levels (sump) and lower oil pressure to the lifters' bores. Piston cooling jets that fail to pop off will reduce piston lubrication leading to increased heat and wear. 

"With this tool, you'll be able to verify operation prior to start up or diagnose an issue."

FEULING PARTS

www.feulingparts.com

Baker Drivetrain

Heal Your Achilles' Heel 

Designed to "heal your Achilles' heel" the Baker Factory 6-Speed Tapered Roller Bearing Kit is based on one thing that high-performance engine builders and Baker engineers have long recognized - "the unbeatable durability of the tapered roller 'Timkens' on the left side of the engine."

"Inspired by this proven strength," Bert Baker says that "we developed the double-tapered roller bearing system in this kit to reinforce stock Cruise Drive 6-speed transmissions. This upgrade replaces the weaker factory single-row ball bearing with a robust setup that enhances stability, reduces wear, and improves longevity under high-load conditions. 

Designed as a Main Drive Gear Bearing Kit for 2007-up Big Twins, the kit includes the double tapered roller bearing assembly, replacement HD main drive gear and replacement countershaft bearing - "providing everything needed to eliminate the all-too-common stock maindrive gear bearing failures. We include our exclusive Baker double tapered roller bearing assembly, and a replacement cruise drive main drive gear."

Fitment is for 2006 and later Stock Dyna and 2007 and later Stock Softail/Touring. A Transmission Rebuild Kit to go along with this double tapered roller bearing kit is also available.

BAKER DRIVETRAIN

www.bakerdrivetrain.com

S&S Cycle

S&S - MK136B M8 Softail Black Edition Crate Engines 

Available in versions for '18-'20 49-state and '18-'24 race only applications, these MK136B Black Edition M8 Softail engines are described as "the next generation of Proven Performance."

These are the newest versions of the complete crate engines that S&S is known for, ready to install in your customer's M8 Softails. "We took our MKB-Series Crankcases, married them to the 136" cylinders and flywheels, and then fit High-flow cylinder heads with +1 mm Valves and .605" springs. This is everything you need to have the largest, most powerful, and most reliable crate engine on the market today." 

High-flow cylinder heads with premium seats, guides, valves, springs, and seals have +1 mm oversized intake and exhaust valves that are .030" longer than stock for improved valvetrain geometry. They have exclusive S&S breather boxes and .605" max lift valve springs. The high-strength alloy used in the cylinder head casting has been tested to deliver improved strength at high temperatures.

The crankcases are all premium quality, with patented dual-spray piston cooling jets, precision machined oil scraper, enlarged oil scraper and a contoured floor that allows oil to easily drain back to the sump.

The MK136B has forged pistons; S&S performance oil pump and cam support plate; premium tappets and tappet cuffs; billet aluminum covers and included sprocket shaft spacer and Champion spark plugs.

The stock engine height is retained, and the finish includes a Cam Cover badge, and powder coat factory-match finish. "The huge displacement increase means a huge power increase. Simple."

The street legal '18-'20 version is not legal for sale or use in California but is Qualified Manufacturer Declared 49-state Federal Emissions Compliant for M8 Softails except for Fat Bob, FXDR and Sport Glide.  

S&S CYCLE INC.

www.sscycle.com