Bhagwan Marine Limited has announced a transformative acquisition of Riverside Marine Holdings for up to $130 million, significantly boosting its scale, service diversity, and earnings potential.
- Acquisition valued up to $130 million on a debt-free, cash-free basis
- Riverside Marine adds 30 vessels and expands geographic footprint to North Queensland and Pilbara
- Pro forma revenue increase of 22% and EBITDA uplift of 54% for Bhagwan
- Funding includes $70 million debt facility, $20 million vendor equity, and $30 million institutional share placement
- Earn-out component tied to Riverside’s FY26 EBITDA performance
A Strategic Leap Forward
Bhagwan Marine Limited, Australia's leading listed marine solutions provider, has taken a decisive step to broaden its operational footprint and service offerings by agreeing to acquire Riverside Marine Holdings Pty Ltd. The deal, valued at up to $130 million on a debt-free and cash-free basis, marks a significant expansion for Bhagwan, enhancing its position as a preferred partner in marine services.
Riverside Marine, a family-owned company with roots stretching back to 1926, operates a diverse fleet of approximately 30 vessels across five established brands. Its operations span harbour towage, vessel management, sand dredging, commercial ferries, and marine consultancy, with a strong presence in Queensland and Western Australia. This acquisition introduces new service lines and broadens Bhagwan’s commodity exposure to include iron ore, metallurgical coal, and industrial sand.
Financial Upside and Operational Synergies
Financially, the acquisition is poised to be highly accretive. Riverside is forecast to deliver $63 million in revenue and $26 million in EBITDA for FY26, boasting an impressive EBITDA margin of around 40%. Bhagwan’s pro forma figures post-acquisition show a 22% increase in revenue to $364.3 million and a 54% jump in EBITDA to $77.2 million, with earnings per share expected to rise by approximately 14%.
The deal is structured with a $70 million three-year debt facility from the Commonwealth Bank of Australia, $20 million in vendor equity, and a $30 million institutional share placement, which was strongly oversubscribed. An earn-out mechanism offers up to $10 million additional consideration based on Riverside’s EBITDA performance, aligning incentives for continued operational success.
Cultural and Strategic Fit
Beyond numbers, the acquisition reflects a strong cultural alignment. Riverside’s leadership, including the Campbell family, will remain actively involved and become significant shareholders in Bhagwan, ensuring continuity and shared values. Both companies emphasize safety, operational excellence, and long-term client relationships, which bodes well for integration and future growth.
Geographically, the acquisition extends Bhagwan’s reach into North Queensland and the Pilbara, regions critical to Australia’s resource sectors. This diversification reduces reliance on any single commodity or market and enhances resilience against sector volatility.
Next Steps and Market Implications
Completion of the acquisition is subject to shareholder and customer approvals, financing arrangements, and the absence of material adverse changes. Bhagwan plans to hold a general meeting in late March 2026 to seek these approvals. Meanwhile, investors will be watching closely how the integration unfolds and whether the anticipated synergies and financial benefits materialize.
Bhagwan’s upcoming half-year results, due on 26 February 2026, will provide the first opportunity to assess the company’s performance ahead of the acquisition’s completion. The market will be keen to see how Bhagwan balances growth ambitions with prudent capital management in this transformative phase.
Bottom Line?
Bhagwan’s bold acquisition of Riverside Marine sets the stage for accelerated growth, but execution risks remain as integration and approvals unfold.
Questions in the middle?
- Will the earn-out targets tied to Riverside’s FY26 EBITDA be met, unlocking full consideration?
- How smoothly will Riverside’s operations and culture integrate with Bhagwan’s existing business?
- What impact will the increased debt and equity funding have on Bhagwan’s balance sheet and shareholder returns?