Bhagwan Marine Closes $130m Riverside Deal to Drive Scaled Growth

Bhagwan Marine Ltd. ( (AU:BWN) ) has provided an announcement.

Bhagwan Marine Limited, Australia’s largest listed marine solutions provider to the offshore energy, subsea, ports and inshore, and defence sectors, has strengthened its position with a diverse fleet and the country’s largest in-house marine crewing operation. The company’s reputation is built on safety-focused, locally based crews and deep relationships with major energy, mining, construction firms and government agencies, supporting its growth-through-acquisition strategy.

The company has completed the acquisition of 100% of Riverside Marine Holdings Pty Ltd for an enterprise value of up to $130 million on a debt-free, cash-free basis with normal working capital. The deal is intended to broaden Bhagwan’s service offering, diversify its exposure across commodities and geographies, and expand its base of recurring revenue through Riverside Marine’s capital-light model and long-term contracts.

Bhagwan funded the transaction with $100 million in initial cash consideration and the issue of 48.8 million fully paid ordinary shares to the vendors, with the scrip locked up under voluntary escrow arrangements for up to 24 months. Vendors may also receive up to $10 million in additional earn-out cash consideration linked to Riverside Marine’s FY26 EBITDA performance, aligning incentives with future earnings growth.

Of the cash component, $30 million was raised via a two-tranche equity placement to institutional, sophisticated and professional investors, supplemented by additional shares issued to directors and related parties, all approved by shareholders. The remaining $70 million was financed through a new three-year debt facility with Commonwealth Bank of Australia, while Bhagwan’s existing CBA facilities remain unchanged, leaving its broader funding structure intact.

Management has characterised the Riverside Marine acquisition as a transformational milestone that scales operations in line with Bhagwan’s corporate strategy of targeted acquisitions. The transaction is expected to enhance free cash flow generation and support sustainable earnings growth, reinforcing Bhagwan’s competitive position in Australia’s marine services market and potentially improving visibility for stakeholders through increased contracted and recurring revenue streams.

The most recent analyst rating on (AU:BWN) stock is a Hold with a A$0.44 price target. To see the full list of analyst forecasts on Bhagwan Marine Ltd. stock, see the AU:BWN Stock Forecast page.

More about Bhagwan Marine Ltd.

Bhagwan Marine Limited is Australia’s largest listed marine solutions provider, serving the offshore energy, subsea, ports and inshore, and defence sectors. The company operates a diverse, multi-functional fleet and is the country’s largest in-house marine crewing provider, employing more than 1,000 professionals, including up to 200 qualified divers, and maintains long-standing partnerships with major energy, mining, construction and government clients.

Its locally based crews are recognised for a strong safety culture and operational excellence in complex environments, underpinning Bhagwan’s reputation as a trusted partner in marine operations. This positioning supports the company’s strategy to expand its service offering and recurring revenue base through targeted acquisitions and broader geographic and commodity exposure.

Average Trading Volume: 398,665

Technical Sentiment Signal: Sell

Current Market Cap: A$130.8M

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