Case 13: Polaris and Victory: Entering and Growing the Motorcycle Business C-171(Indian Motorcycle Manufacturing, Inc.) was the most
recognizable American brand next to Harley-Davidson.
Indian was the first American motorcycle company
founded in 1901 and the Indian Chief was a classic heavy
cruiser highly desired by motorcycle enthusiasts world-
wide. However, the company had been out of business
since the British motorcycles knocked it out of the mar-
ket in the 1950s. There were several attempts to revive
the brand in the 1990s although none was very success-
ful in the long term.
The Polaris press release for the acquisition was as
follows:MINNEAPOLIS, Apr 19, 2011 (BUSINESS WIRE) –
Polaris Industries Inc. (NYSE: PII) today announced
the acquisition of Indian Motorcycle. The business was
acquired from Indian Motorcycle Limited (“IML”), a com-
pany advised by Stellican Limited and Novator Partners
LLP, U.K. Private Equity firms. Terms of the transaction
were not disclosed.
“We are excited to be part of the revitalization of a quint-
essentially American brand,” said Scott Wine, CEO of Polaris
Industries Inc. “Indian built America’s first motorcycle. With
our technology and vision, we are confident we will deliver
the classic Indian motorcycle, enhanced by the quality and
performance for which Polaris and Victory are known.”
With this acquisition, Polaris adds one of motor-
cycling’s legendary brands to its strong stable of Victory
cruiser and touring bikes. Indian will operate as an auton-
omous business unit, building upon the potent combina-
tion of Polaris’ engineering acumen and innovative tech-
nology with Indian’s premium brand, iconic design and
rich American heritage.
“We are delighted to have reached an agreement with
Polaris. Polaris will utilize its well-known strengths in
engineering, manufacturing, and distribution to complete
the mission we undertook upon re-launching the brand in
2006: harness the enormous potential of the Indian brand,”
said Stephen Julius, chairman of Indian and managing
director of Stellican. “Polaris is the most logical owner
of Indian Motorcycle. Indian’s heritage brand will allow
Polaris to aggressively compete across an expanded spec-
trum of the motorcycle market.”
Novator Partners LLP is a London based alterna-
tive investment firm founded and led by the investor
Mr. Thor Bjorgolfsson. An avid motorcycle enthusiast,
Mr. Bjorgolfsson said “After a troubled past, our goal was
to bring the legendary Indian bikes back on the roads.
The initial phase of that project is done and now our
great partners at Polaris will carry on the work to realize
the full potential of this classic American brand.”
Founded in 1901, Indian was America’s first motorcy-
cle company, producing some of the industry’s most iconic
models and becoming the world’s largest motorcycle man-
ufacturer. In recent years, Indian has continued to pro-
duce these legendary motorcycles on a smaller scale. The
company’s instantly recognizable badge is still associated
with premium products and strong American heritage by
casual consumers and motorcycle enthusiasts alike.
Polaris CEO Scott Wine stated in an April 20, 2011
webcast that the company would incorporate the man-
ufacture of Indian Motorcycles into the current Victory
plant in Spirit Lake, Iowa. Wine indicated that Polaris’
world-class manufacturing and distribution skill would
blend nicely with Indian’s rich American heritage and
style. He said that Polaris had the corporate resources
and strategic strengths to contribute to what Indian
needed for success, including a strong dealer network,
while Indian provided Polaris and Victory with enhanced
brand recognition in the heavy weight segment. He went
on to note that the acquisition provided Polaris’ motor-
cycle business access to the ‘die hard’ component of the
heavy weight motorcycle segment.
The amount Polaris paid for Indian was not given in
the press release or in the webcast. Scott Wine did say,
however, that Polaris had ‘plenty on the balance sheet’
to support the acquisition. The acquisition of Indian
came at a great time for both companies. According
to the webcast, Victory sales were up 77 percent for
the first quarter of 2011. Sales were up substantially in
France and Germany, and were growing internationally
in general. Victory revenue was up 59 percent for the
2011 first quarter. Indian, on the other hand, was having
financial difficulty and needed help in terms of quality
manufacturing.
By 2014, Polaris had moved Indian production to the
Iowa Spirit Lake plant and had announced plans to grow
the Indian brand. The company indicated they would
produce the class Indian Chief model and resurrect the
classic smaller Indian Scout motorcycle.Growing Polaris Motorcycles46,47
Additionally, on October 26, 2011, Polaris Industries
announced that it had acquired a minority stake in
Brammo, an Oregon-based producer of two-wheeled
electric vehicles. Brammo, founded in 2002, is an indus-
try leader in electric power-train and battery-pack tech-
nologies, and offers the Encite, Empulse, Engage, and
Enertia electric motorcycle lines. According to the
Polaris press release, Brammo motorcycles are capable
of speeds in excess of 60 miles per hour and can travel