Bhagwan Marine (ASX:BWN) entered into a binding agreement to acquire 100% of Riverside Marine.
The deal, valued at an enterprise price of up to $130 million, is set to be executed on a debt-free, cash-free basis.
The Brisbane-based Riverside Marine brings a storied legacy and a diverse fleet of approximately 30 vessels, including nine owned assets across five distinct brands.
The acquisition is widely viewed as a "step-change" in scale, positioning Bhagwan as a premier, multi-disciplinary partner in the marine solutions market.
The rationale behind the merger is centered on diversification and financial stability. Riverside’s operations span North Queensland, Mackay, and the Pilbara, offering critical services in sand dredging, harbour tugs, and commercial ferries.
The move is highly lucrative: Riverside forecasts $63 million in revenue and $26 million in EBITDA for FY26.
The acquisition will boost Bhagwan’s repeatable revenue base from 40% to roughly 50%, underpinned by long-term contracts in the industrial resources and scientific research sectors.
At the time of reporting, Bhagwan Marine's share price was $0.47.