Polaris Acquires Indian Motorcycle

[totalmotorcycle]

Polaris Acquires Indian® Motorcycle

Polaris brings world-class engineering, manufacturing and distribution to Indian’s rich
American heritage and historic brand



MINNEAPOLIS (April 19, 2011) — Polaris Industries Inc. (NYSE: PII) today announced the acquisition of Indian Motorcycle. The business was acquired from Indian Motorcycle Limited (“IML”), a company 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 quintessentially 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 motorcycling’s legendary brands to its strong stable of Victory cruiser and touring bikes. Indian will operate as an autonomous business unit, building upon the potent combination of Polaris’ engineering acumen and innovative technology 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 spectrum of the motorcycle market.”



Novator Partners LLP is a London based alternative 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.”


About Polaris

With annual 2010 sales of $1.991 billion, Polaris designs, engineers, manufactures and markets off-road vehicles (ORVs), including all-terrain vehicles (ATVs) and the Polaris RANGER® Side X Side vehicles, snowmobiles and Victory motorcycles for recreational and utility use and has recently introduced a new on-road electric powered neighborhood vehicle.

Polaris is a recognized leader in the snowmobile industry; and one of the largest manufacturers of ORVs in the world. Victory motorcycles, established in 1998 and representing the first all-new American-made motorcycle from a major company in nearly 60 years, are making in-roads into the cruiser and touring motorcycle marketplace. Polaris also enhances the riding experience with a complete line of Pure Polaris apparel, accessories and parts, available at Polaris dealerships.

Polaris Industries Inc. trades on the New York Stock Exchange under the symbol “PII”, and the Company is included in the S&P MidCap 400 stock price index.

Information about the complete line of Polaris products, apparel and vehicle accessories are available from authorized Polaris dealers or anytime from the Polaris homepage at www.polarisindustries.com.



About Indian Motorcycle

Founded in 1901, Indian was America’s first motorcycle company, producing some of the industry’s most iconic models and becoming the world’s largest motorcycle manufacturer. In recent years, Indian has continued to produce 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.



About Stellican

Stellican is a U.K. Private Equity firm specializing in the purchase, turnaround and re-launch of iconic, heritage brands which have gone bankrupt. In the last ten years, Stellican has been particularly active in the power sport industry. It currently advises funds which own Chris-Craft Corporation, a premium boat and yacht builder based in Sarasota, Florida, which it acquired in 2001. Previously, Stellican advised funds which owned Riva boats in Italy


About Novator

Novator is an alternative investment firm founded and led by the international investor and entrepreneur Björgólfur Thor Björgólfsson. Novator's investment portfolio is focused around following sectors: Telecommunications, Pharmaceuticals, IT and Renewable Energy. In addition, Novator operates a Private Equity Fund and a Credit Opportunities Fund.

[High_Side]

Wow. That is big news! Hopefully it doesn't drag 'em down like it has everyone else who have taken a shot at owning this brand. Polaris might actually have deep enough pockets to pull it off.

[totalmotorcycle]

I agree with you. Polaris should be able to re-make Indian Motorcycles the company they should have been. This is the best news I've read for the motorcycle industry in a while. Indian made some great vintange looking bikes, it will be interesting to see if Polaris incorporates some Victory motorcycle R&D in there too.

[Wrider]

I'm just hoping they don't just rebrand the Victory line as Indians and call it good.

[Johnj]

Maybe they will talk to Erik Buell.

[HYPERR]

Maybe they will talk to Erik Buell.

That would be great. Give Buell the financial banking he deserves, give him a very long leash and then kick some a$$!

[jstark47]

Ohmigosh, what the heck is Polaris thinking? Hope they didn't pay too much - hope Stellican didn't play them like chumps. Buy a company with super-high production costs, very low volume sales, and very little established market? For what? Brand recognition? I'll admit, the Indian name still has that. Maybe they're using Indian as a write-down of some sort?

[totalmotorcycle]

Polaris talking to Erik Buell to introduce a "sportline" of Indian sportcycles might not be a bad idea. Indian may have been known for their cruisers today, but back in the day, Indian also made some fast bikes.

Like this 1949 Indian motorcycle:



Even though I like many cruiser styles, the last generation of Indian motorcycles where "before my time" in styling. If I was a boomer or silent generation then I'd be all over that style, but I'm not.

[QuietMonkey]

A repost of what I put in the Cool Wall forum in the Victory thread:

The rebirth of Indian is just as storied as Norton, but like the new Norton, I think they will be back for a lot longer this time, and the Harley vs. Indian rivalry can go on in earnest like the old feud it was among the war-time populace of a bygone era.

The attached Indian 4-cylinder from 1930 was probably one of those bikes that gained them a solid performance reputation before the war.

I would add that I think BRP (Bombardier/Can-Am) is the best matched parent company for Buell, if anyone. I think Polaris can do Indian on there own just fine, including some sporting versions.

[QuietMonkey]

I looked in one of my classic motorcycle books and even back in 1924 Indian had the very notable Indian Chief, then in 1938 the 4-cylinder engine, an Indian 438. Indian bought the Ace Motorcycle company who made the Henderson 4-cylinder engines and this was mod'ed and became the Indian Four. They also mention that the Scouts in smaller displacements were a match for larger engined Harley's, and were popular oval track racers.

The book also shows a cool scramber from 1953, called a Woodsman -- which was a rebadged Royal Enfield.