04:43 PM EDT, 10/13/2025 (MT Newswires) -- Polaris (PII) said late Monday it will separate Indian Motorcycle business from its portfolio into an independent company.

The company said it will sell a majority stake in Indian Motorcycle to private equity firm Carolwood. The transaction is expected to be accretive to Polaris' annualized adjusted earnings before interest, taxes, depreciation, and amortization and adjusted EPS by around $50 million and $1.00, respectively, according to a statement.

Under the agreement, around 900 employees will transition to the new Indian Motorcycle company. Carolwood selected Mike Kennedy to serve as the CEO of the new standalone company.

Polaris said it expects fiscal Q3 adjusted EPS of $0.31 to $0.41 and sales to be at the high end of its prior guidance range of $1.60 billion to $1.80 billion. Analysts polled by FactSet expect a loss of $0.16 on sales of $1.69 billion.

The company is scheduled to publish its Q3 results on Oct. 28.