Bhagwan Marine (BWN) Investor presentation summary

Transaction highlights and overview

• Acquisition of Riverside Marine Holdings for $120m upfront, with up to $10m earnout based on FY26 EBITDA performance.

• Funded by $70m debt, $20m vendor shares, and $30m investor share placement.

• Completion expected around 31 March 2026, on a cash-free, debt-free basis.

• Transaction is highly EPS and return accretive, with pro forma EPS up 14% and return on equity up over 20%.

• EBITDA margin increases from 18% to 24% post-acquisition.

Riverside business overview

• Riverside operates ~30 vessels (9 owned) across 5 brands, serving tier-1 customers in industrial resources, research, and logistics.

• Forecasts for FY26: $63.3m revenue, $26.2m EBITDA (41.3% margin), and $17.2m EBIT.

• 88% of revenue is repeatable, supported by multi-year contracts.

• Capital-light model with sustaining capex at 30–35% of EBITDA.

• Experienced management and high-quality crew underpin operational excellence.

Strategic rationale and growth outlook

• Acquisition diversifies service, geography, and commodity exposure, increasing recurring revenue from ~40% to ~50%.

• Riverside’s capital-light model generates strong free cash flow and high margins.

• Opportunities for revenue synergies, cross-selling, and increased vessel utilisation.

• Growth drivers include increased demand for marine research, construction, and tourism, especially with the upcoming Brisbane Olympics.

• Combined group targets sustainable earnings growth and higher returns on assets.