Tidewater Inc has signed a deal to buy Wilson Sons Ultratug Offshore (WSUT) in a stock acquisition valuing the Brazilian operator of oil and gas support vessels at around $500 million.
“The Brazilian offshore vessel market is one of the largest and most compelling in the world”, Tidewater president and chief executive Quintin Kneen said in a company statement.
“As of today, 21 of WSUT’s 22 vessels are active and working in Brazil, allowing Tidewater to commercialize this new asset base”, Kneen added.
Houston, Texas-based Tidewater expects the acquisition to increase its fleet to 213 offshore support vessels (OSVs) for a total of 231 vessels including “crew boats, tug boats and maintenance vessels”, said the statement on its website. The assets to be purchased consist of platform supply vessels (PSVs).
The acquisition would reinforce Tidewater’s deployment in the South American country to 28 vessels. Tidewater noted, “19 of WSUT’s fleet of PSVs are Brazilian-built, establishing Tidewater as one of the main providers of Brazilian-built PSVs; Brazilian-built vessels receive priority to operate in Brazil”.
“WSUT’s fleet of Brazilian-built vessels would enable Tidewater to import international-flagged vessels into Brazil under the Brazilian Special Registry”, it added.
“WSUT’s fleet delivers approximately $441 million of existing backlog, with many contracts currently on day rates materially lower than current market day rates, providing for expected significant earnings and free cash flow uplift as contracts roll over”, Tidewater said.
Kneen said, “Considering the long-term supply and demand for offshore vessels in Brazil, as well as the potential to introduce international tonnage, this transaction provides Tidewater with a compelling opportunity to capitalize on these dynamics”.
The transaction involves Tidewater’s takeover of Wilson Sons Ultratug Participações SA including its affiliate Atlantic Offshore Services SA, collectively WSUT, through the acquisition of all WSUT outstanding shares. WSUT is a joint venture between Brazil’s Wilson Sons and Chile’s Ultratug.
Tidewater said it would also assume WSUT’s existing debt of $261 million from Brazilian development bank BNDES and Banco do Brasil.
“Tidewater intends to novate WSUT’s low-cost, long-duration amortizing debt providing a significant cost of capital advantage and built-in financing”, Tidewater said.
Kneen said, “Assuming the transaction closes at the end of the second quarter, we expect the WSUT business to generate approximately $220 million of revenue and generate a gross margin of approximately 58 percent over the first 12 months”.
“In addition, we would expect to incur approximately $14 million of annual G&A [general and administrative] expense”, Kneen said.
“Following the successful refinancing transactions executed during the third quarter of 2025 and now the WSUT acquisition, we have executed a series of steps that have positioned Tidewater as one of the world’s leading OSV operators with what we believe to be the strongest balance sheet in the industry”, Kneen added. “Pro forma for an estimated June 30, 2026 closing of the transaction, we will have a net leverage ratio below 1.0x which, when combined with substantial near-term free cash generation, will provide for continued flexibility to pursue additional capital deployment opportunities”.
To contact the author, email jov.onsat@rigzone.com
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