Bhagwan Marine's (ASX:BWN) acquisition of Riverside Marine Holdings increases the company's earnings before interest, taxes, depreciation, and amortization to the upper end of AU$70 million from AU$50 million, according to a Tuesday report by Euroz Hartleys.

Last week, the company said it agreed to acquire Riverside from the Campbell Family for an upfront purchase price of AU$120 million.

The deal adds scale, recurring revenues and earnings, meaningfully increased margins, strong cashflow generation, and numerous growth opportunities, Euroz said.

The increase in size of the business from the acquisition also adds relevance, Euroz noted.

Euroz maintained Bhagwan Marine's buy rating and raised its price target to AU$0.87 from AU$0.77.

Shares of the company fell 2% in recent Tuesday trade.