Polaris selling Indian Motorcycles??

[Big Si]

Or at least a major share of it..........

Polaris Selling Indian Motorcycle Majority Stake

Polaris to sell a majority stake in Indian Motorcycle to private equity firm Carolwood LP, separating it into a standalone company retaining 900 employees and major facilities.

www.cycleworld.com

 

[fatbaldbob]

That’s bad news, could be the beginning of the end for the brand.

 

[Doc]

That’s bad news, could be the beginning of the end for the brand.

Let's hope not. Might be good for the brand.

 

[fatbaldbob]

Let's hope not. Might be good for the brand.

A lot of discussion on that other forum we belong to. Many believe it to be a positive as it will become an independent brand not simply an arm of Polaris Industries. They made close to $500m profit last year so it’s in good shape but apparently that’s why Polaris are selling up, Indian is in good shape and they need the money to prop up other areas of the Polaris business. They will still be a shareholder so will maintain an interest, fingers crossed it’s a good thing, the new bosses are all motorcycle guys with a lot of experience so

 

[The Other PaulG]

I was sorry when Polaris axed Victory - I thought that was quite an interesting brand.

I don’t suppose any of this recent shift will allow Victory to resurface?

 

[squibb34]

Sadly the private equity route so often has negative connotations for the future of a business, particularly when the acquisition is funded through gearing up. In the event of subsequent sluggish financial performance, given the increased debt burden, there is then the temptation to either asset strip or close down, cut & run.

So, this is troubling news - Let's hope the outlook for Indian is positive.

 

[MILLE_RIDER]

The private equity firm wouldn't be buying unless it thought it could grow the business

 

[JJH]

The private equity firm wouldn't be buying unless it thought it could grow the business

Or raid it for its profitable arms to sell off and walk away with a sizeable profit. JJH

 

[fatbaldbob]

Some more info below from the announcement; it looks like the new owners are looking long term to grow the brand and the new team seem to have the right pedigree behind them:

Excerpt of the announcement.

Future Indian Motorcycle Leadership
Carolwood has selected Mike Kennedy to serve as CEO of the new independent Indian Motorcycle organization once the deal closes. A more than 30-year motorcycle industry veteran, Kennedy has a proven track record as a leader in and around the motorcycle industry. He previously served as CEO of RumbleOn, the nation’s largest powersports dealership group; CEO and President of Vance & Hines, a leading manufacturer of high-performance aftermarket motorcycle exhaust systems and accessories; and spent 26 years at Harley-Davidson in various leadership roles.

Adam Rubin, Principal at Carolwood, 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. 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.”

Continuity for Indian Motorcycle
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. 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.

 

[Clifton]

Carolwood has selected Mike Kennedy to serve as CEO of the new independent Indian Motorcycle organization once the deal closes. A more than 30-year motorcycle industry veteran, Kennedy has a proven track record as a leader in and around the motorcycle industry. He previously served as CEO of RumbleOn, the nation’s largest powersports dealership group; CEO and President of Vance & Hines, a leading manufacturer of high-performance aftermarket motorcycle exhaust systems and accessories; and spent 26 years at Harley-Davidson in various leadership roles.

...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.

Kennedy seems like a good choice, which begs the question;

After Zeitz the tennis shoe guy didn't pan out why in the world didn't Harley Davidson's board choose Mike Kennedy to be the new CEO instead of Artie Starrs from Topgolf?

 

[MILLE_RIDER]

Or raid it for its profitable arms to sell off and walk away with a sizeable profit. JJH

Indian is/was an arm of Polaris, I don't supposed Indian could be broken up into smaller concerns