Bhagwan Marine (ASX:BWN) entered into a share sale and purchase agreement to acquire Riverside Marine Holdings from the Campbell Family for an upfront purchase price of AU$120 million, according to a Monday Australian bourse filing.

The consideration is supported by a AU$70 million three-year debt facility from Commonwealth Bank of Australia (ASX:CBA), AU$20 million in vendor equity, and a AU$30 million institutional share placement.

The completion of the deal is subject to the satisfaction of certain conditions, including the receipt of all required shareholder approvals, the filing said. The company will pay an initial cash consideration of AU$100 million to the vendors and issue 48.8 million fully paid ordinary shares in Bhagwan to the vendors on completion.

The company also received AU$26.2 million of binding commitments for a two-tranche placement of 63.9 million new shares to investors at an issue price of AU$0.41 apiece, the filing said.

The acquisition is expected to be completed in late March.

Bhagwan Marine's shares climbed over 4% in recent trading on Monday, while Commonwealth Bank of Australia's shares added about 1%.