Bhagwan Marine (ASX: BWN) Expands Footprint with Strategic Riverside Marine Acquisition

Key Highlights

• Bhagwan Marine to acquire 100% of Riverside Marine Holdings, strengthening its inshore marine services portfolio
• Acquisition funded via debt, vendor shares and a $30m placement
• Riverside expected to deliver FY26 revenue of $63.3m and EBITDA of $26.2m
• Transaction forecast to lift EPS by ~14% and EBITDA margins to ~24%
• Combined entity set to benefit from diversified services, stronger recurring revenue and improved cash flow visibility
  
   

Bhagwan Marine charts growth course with Riverside acquisition

Australia’s marine services provider Bhagwan Marine (ASX: BWN) is positioning itself for its next phase of growth with the proposed acquisition of Riverside Marine Holdings, a long-established maritime operator with deep roots across Australia’s coastal infrastructure sector. The deal, described by the company as transformational, signals a strategic expansion aimed at strengthening recurring earnings, diversifying service capabilities and unlocking operational synergies.

Under the agreement, Bhagwan Marine will acquire 100% of Riverside Marine on a cash-free, debt-free basis, with completion targeted for around 31 March 2026, subject to customary conditions. 

The upfront purchase consideration totals $120 million, funded through a combination of a $70 million debt facility, $20 million in vendor shares, and a $30 million institutional placement, with a potential earn-out of up to $10 million tied to Riverside’s FY26 earnings performance. 

A nearly century-old marine operator joins the fleet

Founded in Brisbane in 1926, Riverside Marine has built a reputation as a specialist maritime services operator managing approximately 30 vessels, including nine owned vessels, across multiple operating divisions. Its activities range from harbour towage and ferry operations to dredging and research vessel management, serving tier-one industrial and government customers. 

Riverside is forecast to generate FY26 revenue of approximately $63.3 million and EBITDA of $26.2 million, representing strong industry-leading margins of about 41%. 

A notable feature of the business is the stability of its revenue streams. Around 88% of Riverside’s income is repeatable, underpinned by long-term contracts with key customers across resources, logistics, research and government sectors. 

For Bhagwan Marine, this profile offers a significant improvement in earnings visibility and strengthens its ability to generate consistent free cash flow across economic cycles.

Strategic fit and earnings uplift

Management has emphasised that the acquisition represents both a strategic and cultural alignment. Riverside’s focus on vessel operations rather than heavy ownership requirements complements Bhagwan’s operational model and adds new geographic and commodity exposures, including iron ore, metallurgical coal and industrial sand markets. 

Pro-forma modelling indicates that the transaction could deliver EPS accretion of roughly 14%, while lifting EBITDA margins from approximately 18% to around 24% and improving return metrics across the group. 

Bhagwan Marine Managing Director and CEO Louie Kannikoski said the acquisition aligns with the company’s long-term strategy of building scale while maintaining financial discipline:

“The transaction is a strong strategic and cultural fit. It reinforces our commitment to long-term shareholder value through higher returns on assets and strong free cash flow. We’re excited by the Company’s future growth opportunities and warmly welcome the Campbell Family and the Riverside team to Bhagwan.” 

Source: BWN ASX Announcement

The integration is expected to expand Bhagwan Marine’s recurring revenue contribution to roughly 50% of total earnings, further strengthening the stability of the combined business model. 

Broader industry positioning

The marine services sector has experienced rising demand driven by expanding offshore energy activity, infrastructure development, port logistics growth and increased scientific research requirements. Operators with diversified vessel fleets and long-term contractual arrangements are increasingly viewed as well-positioned to benefit from these structural trends.

Riverside’s exposure to harbour towage, ferry operations, dredging and research vessel services introduces new earnings channels for Bhagwan Marine while also expanding its operational footprint across North Queensland, Mackay, Townsville and key resource ports. 

Additionally, Riverside’s capital-light operational approach, which prioritises vessel management over ownership, supports stronger free cash flow generation and reduces long-term capital intensity. 

Market reaction and outlook

Shares of Bhagwan Marine were trading around $0.46, up approximately 2.22%, following the announcement, reflecting early market optimism about the strategic benefits of the acquisition and expected earnings accretion.

Looking ahead, the company is expected to focus on integrating Riverside’s operations, capturing operational efficiencies and expanding cross-selling opportunities across its combined client base. Management also indicated that the enlarged platform enhances the company’s ability to compete for large-scale marine logistics and offshore infrastructure projects across Australia.

While execution risks remain, particularly around integration timelines and funding costs, analysts generally view the transaction as strategically aligned with Bhagwan Marine’s long-term growth strategy, positioning the group as a more diversified and cash-flow resilient marine services operator.

Source: Bhagwan Marine ASX presentation and acquisition materials, 9 February 2026.