Tidewater Inc has signed a deal to purchase Wilson Sons Ultratug Offshore (WSUT) in a inventory acquisition valuing the Brazilian operator of oil and fuel assist vessels at round $500 million.
“The Brazilian offshore vessel market is likely one of the largest and most compelling on the earth”, Tidewater president and chief govt Quintin Kneen stated in an organization assertion.
“As of as we speak, 21 of WSUT’s 22 vessels are lively and dealing in Brazil, permitting Tidewater to commercialize this new asset base”, Kneen added.
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Houston, Texas-based Tidewater expects the acquisition to extend its fleet to 213 offshore assist vessels (OSVs) for a complete of 231 vessels together with “crew boats, tug boats and upkeep vessels”, stated the assertion on its web site. The property to be bought encompass platform provide vessels (PSVs).
The acquisition would reinforce Tidewater’s deployment within the South American nation to twenty-eight vessels. Tidewater famous, “19 of WSUT’s fleet of PSVs are Brazilian-built, establishing Tidewater as one of many major suppliers of Brazilian-built PSVs; Brazilian-built vessels obtain precedence to function in Brazil”.
“WSUT’s fleet of Brazilian-built vessels would allow Tidewater to import international-flagged vessels into Brazil beneath the Brazilian Particular Registry”, it added.
“WSUT’s fleet delivers roughly $441 million of current backlog, with many contracts at the moment on day charges materially decrease than present market day charges, offering for anticipated important earnings and free money circulate uplift as contracts roll over”, Tidewater stated.
Kneen stated, “Contemplating the long-term provide and demand for offshore vessels in Brazil, in addition to the potential to introduce worldwide tonnage, this transaction offers Tidewater with a compelling alternative to capitalize on these dynamics”.
The transaction entails Tidewater’s takeover of Wilson Sons Ultratug Participações SA together with its affiliate Atlantic Offshore Providers SA, collectively WSUT, by way of the acquisition of all WSUT excellent shares. WSUT is a three way partnership between Brazil’s Wilson Sons and Chile’s Ultratug.
Tidewater stated it could additionally assume WSUT’s current debt of $261 million from Brazilian growth financial institution BNDES and Banco do Brasil.
“Tidewater intends to novate WSUT’s low-cost, long-duration amortizing debt offering a major price of capital benefit and built-in financing”, Tidewater stated.
Kneen stated, “Assuming the transaction closes on the finish of the second quarter, we count on the WSUT enterprise to generate roughly $220 million of income and generate a gross margin of roughly 58 p.c over the primary 12 months”.
“As well as, we might count on to incur roughly $14 million of annual G&A [general and administrative] expense”, Kneen stated.
“Following the profitable refinancing transactions executed through the third quarter of 2025 and now the WSUT acquisition, now we have executed a sequence of steps which have positioned Tidewater as one of many world’s main OSV operators with what we imagine to be the strongest steadiness sheet within the business”, Kneen added. “Professional forma for an estimated June 30, 2026 closing of the transaction, we could have a web leverage ratio beneath 1.0x which, when mixed with substantial near-term free money technology, will present for continued flexibility to pursue further capital deployment alternatives”.
To contact the writer, e-mail jov.onsat@rigzone.com
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