A Western Australia-headquartered workboat owner has expanded its operations in key metal ore export ports and tugboat management through a cash and share transaction
Bhagwan Marine has acquired Riverside Marine Holdings in a deal with an enterprise value of A$130M (US$90M), expanding its vessel management, fleet and service offering in northern Queensland.
The Perth, Western Australia-headquartered owner entered into a share sale and purchase agreement with Riverside’s owners at the start of 2026.
Bhagwan’s management sees this transaction as a step-change in scale and scope for the Australia-listed company, and positions it “as a preferred marine solutions partner”.
Founded in Brisbane in 1926 by the Campbell family, Riverside manages and operates 30 diverse vessels, including nine owned vessels, across five established brands. The fleet includes harbour tugs, many with hybrid propulsion, supporting metallic ore exports from Australia’s largest ports.
The rationale for this acquisition is Riverside’s strong presence in Mackay and the Pilbara, where it manages tugs escorting Capesize bulk carriers into the port for major mining companies.
“This is a transformational milestone for our company,” said Bhagwan founder and managing director Loui Kannikoski.
“Completion of the acquisition of Riverside Marine delivers continued scaling of our operations through targeted acquisitions, a key pillar of our corporate strategy,” he said.
“Riverside Marine’s capabilities complement our existing operations, strengthening our ability to deliver expanded marine solutions across Australia.”
The Riverside acquisition diversifies Bhagwan’s services, which include third-party vessel operations, harbour tugs, sand dredging and commercial ferries.
In addition to the increased geographic spread, this deal also bolsters Bhagwan’s position supporting marine operations around iron ore, metallurgical coal, industrial sand, and vessel management.
Riverside’s capital-light model and long-term contracts are expected to enhance free cash flow generation and support sustainable earnings growth.
Around 88% of Riverside’s annual revenue is repeatable business due to its long-term contracts, while its vessel management and operations generate high revenues with limited capital expenditure requirements.
On completion, Bhagwan paid an initial cash consideration of A$100M and issued 48.8M fully paid ordinary shares to the vendors of Riverside Marine.
In addition, these vendors may be entitled to a linear earn-out cash consideration of up to A$10.0M once Riverside’s 2026 EBITDA reaches A$25.2M, capped at A$27.2M.
Of the cash consideration, A$30.0M (before costs) was funded via Bhagwan’s recent equity raising to institutional and professional investors, with the remaining A$70.0M funded through a new three-year debt facility with Commonwealth Bank of Australia (CBA).
All other existing debt facilities with the CBA remain unchanged. The equity raising comprised a two-tranche placement of new fully paid ordinary shares in Bhagwan to institutional and professional investors, with the first set of 40.0M shares completed on 17 February 2026 and the second tranche of 23.9M shares completed on 31 March.
In addition to, and concurrent with these placements, Bhagwan also issued 9.3M shares to directors and other related parties at the end of March.
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