Tidewater Inc. has announced a definitive agreement to acquire Wilson Sons Ultratug Participações S.A. and its affiliate Atlantic Offshore Services S.A. in an all-cash transaction valued at approximately $500 million, including the assumption of existing debt. This acquisition significantly strengthens Tidewater's position in the global offshore support vessel market while marking a decisive expansion in Brazil, one of the world's most active offshore energy regions. The deal expands Tidewater's fleet in Brazil from six vessels to 28 and brings a total of 22 platform supply vessels to the company.
The acquisition is expected to be meaningfully accretive to both 2026 and 2027 earnings and free cash flow per share, with substantial near-term free cash generation providing continued flexibility for Tidewater to pursue additional capital deployment opportunities. The deal also includes 'built-in, low-cost financing' as WSUT carries approximately $261 million in long-duration amortizing debt that will be novated and rolled over as part of the transaction.
The Brazilian offshore vessel market is one of the largest and most compelling in the world, according to Tidewater President and CEO Quintin Kneen. The acquisition presents a unique opportunity for Tidewater to enter Brazil in scale with a fleet that is almost 90% Brazilian-built, providing access to local tenders and regulatory status through the Brazilian Special Registry.
The WSUT business enters the transaction with approximately $441 million in backlog, offering substantial forward revenue visibility as many contracts are currently priced below prevailing market day rates. This creates upside potential as contracts roll over, with Tidewater expecting the WSUT business to generate roughly $220 million in revenue over the first 12 months.
Tidewater's expanded footprint positions the company to compete more effectively in local tenders while leveraging REB capacity to deploy additional international tonnage. As of announcement, 21 of WSUT's 22 vessels are active and operating in Brazil, providing immediate commercial integration.
The transaction was unanimously approved by Tidewater's Board of Directors and is expected to close late in the second quarter of 2026, subject to regulatory approvals and customary closing conditions. Piper Sandler is serving as financial advisor to Tidewater, with Skadden, Arps, Slate, Meagher & Flom LLP and Machado, Meyer, Sendacz e Opice Advogados acting as legal counsel.
The acquisition further consolidates Tidewater's position as one of the world's largest and most geographically diversified offshore support vessel operators. With Brazil now firmly in the center of its growth strategy, Tidewater is well-positioned to capitalize on the country's active offshore energy sector.
Tidewater's balance sheet has been strengthened through refinancing actions executed in the third quarter of 2025, which will enable the company to pursue additional capital deployment opportunities. The acquisition follows this refinancing and presents a significant opportunity for Tidewater to expand its presence in Brazil.
The WSUT fleet brings a unique asset to Tidewater - 19 of the 22 platform supply vessels were built in Brazil, providing priority access to local tenders and regulatory status through the Brazilian Special Registry. This strategic asset will enable Tidewater to import and operate international-flagged vessels in Brazil under favorable regulatory status.
Tidewater's expanded fleet and presence in Brazil position the company for long-term success in the offshore support vessel market. With a strong balance sheet and significant revenue visibility, Tidewater is well-equipped to navigate the challenges and opportunities of the global energy sector.
