Carolwood, a downtown Los Angeles-based private equity firm, took the wheel of the 125-year-hold heritage brand Indian Motorcycle.
Carolwood purchased a majority stake of Indian Motorcycle for an undisclosed amount from Polaris Inc., a Medina, Minnesota-based manufacturer of powersports vehicles, said Andrew Shanfeld, a Carolwood principal. Indian Motorcycle will run as a standalone company when the deal closes in the first quarter of 2026.
Indian Motorcycle generated roughly $478 million in sales, accounting for 7% of Polaris Inc’s total revenue in a 12-month period which ended June 30, according to a Polaris statement. Indian Motorcycle had been a division of Polaris since 2011.
Since starting business in 2014, Carolwood has focused on real estate, retail and restaurants, according to the firm’s website. With the Indian Motorcycle deal. Carolwood will place the brand on a new path, Shanfeld said.
“Indian Motorcycle is an iconic brand built on American heritage, craftsmanship, and most importantly, a community of riders,” Shanfeld said in a prepared statement. “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.”
Positioning for the future
For its first move as majority stake owner in Indian, Carolwood tapped motorcycle industry veteran Mike Kennedy to helm the motorcycle manufacturer, said Adam Rubin, a Carolwood principal. Kennedy served as vice president and managing director for the Americas region for Harley-Davidson Inc., Rubin said.
“Indian Motorcycle has defined American motorcycling for over a century, and Carolwood’s role is to ensure that legacy thrives for the next hundred years,” Rubin said. “Mike Kennedy brings over 30 years of experience leading iconic motorcycle and performance brands and will play a critical role in stewarding Indian Motorcycle’s growth. At Carolwood, we’re deeply committed to preserving what makes Indian Motorcycle special, supporting its growth, and empowering the team to write its next great chapter.”
Rubin also confirmed that Indian Motorcycle’s 900 employees will continue in their current jobs.
Polaris will keep a minority stake in Indian Motorcycle, allowing the company to shift its focus, said Mike Speetzen, Polaris’ chief executive.
“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,” Speetzen said in a statement.
Speetzen predicted that the transaction would boost Polaris’ EBITDA by approximately $50 million and to adjusted earnings per share by approximately $1.
The bigger picture
Wall Street reacted positively to the deal. Shares of Polaris rose more than 9% on Oct. 14, a day after the announcement.
Industry analysts saw it as a good move for Indian. Citigroup Inc. analyst James Hardiman told Reuters that heritage motorcycle brand had an uneven performance with Polaris.
“The motorcycle business has always been a volume game, and (Polaris) struggled to drive the growth necessary to get the unit to consistent profitability,” Hardiman said.
Carolwood closed several deals in 2023. In December 2023, it acquired the AON Center in downtown for $148 million, according to CoStar. Earlier that year, Carolwood entered a joint venture agreement with the Beverly Hills-based luxury residential real estate firm Carolwood Estates, according to The Real Deal.
The real estate firm closed $3.2 billion in transactions last year, according to its website.
