Bhagwan Marine (ASX:BWN) has finalised the 100% acquisition of Riverside Marine.
The deal, valued at an enterprise price of up to $130 million, marks a "transformational milestone" for the company as it seeks to diversify its service offerings and expand its recurring revenue streams across various commodities and geographical regions.
The financial structure of the acquisition involved an initial cash payment of $100 million, supplemented by the issuance of 48.8 million fully paid ordinary shares to the vendors.
The shares are subject to voluntary escrow agreements for up to 24 months.
Furthermore, a performance-based "earn-out" provision could see vendors receive an additional cash consideration of up to $10 million, contingent on Riverside Marine achieving specific EBITDA targets for the 2026 financial year.
To fund the cash component, Bhagwan Marine utilised $30 million from a recent equity raising targeting institutional and sophisticated investors, while the remaining $70 million was secured through a new three-year debt facility with the Commonwealth Bank of Australia (ASX:CBA).
Managing Director Loui Kannikoski stated that the integration of Riverside Marine’s capital-light model and long-term contracts will enhance free cash flow and support sustainable earnings growth.