Tidewater Inc. acquires The Wilson Sons Group

Tidewater Inc. is set to acquire Wilson Sons Ultratug Participações S.A. (WSUT) in an all-cash transaction valued at approximately $500 million. This move is strategically significant for Tidewater as it aims to significantly bolster its position in the offshore support vessel sector, particularly within Brazil — one of the most active offshore energy markets globally.

The acquisition includes WSUT and its affiliate, Atlantic Offshore Services S.A., bringing a fleet of 22 platform supply vessels into Tidewater's operations. Upon completion, Tidewater's overall fleet will expand to 231 vessels worldwide, including different vessel types such as tug boats and maintenance vessels. The purchase involves assuming existing debt, underscoring a robust confidence in WSUT's operational health and future potential.

Tidewater's President and CEO, Quintin Kneen, highlighted the importance of this acquisition, noting that the Brazilian offshore vessel market stands out as a major opportunity for growth. A significant point of the deal is that 19 out of WSUT's 22 vessels are Brazilian-built, which ensures competitive positioning in local project tenders. This local production advantage comes with the Brazilian Special Registry tonnage rights facilitating favorable regulatory conditions for international operations.

In terms of financial impact, WSUT brings with it a backlog of approximately $441 million, providing substantial forward revenue visibility for Tidewater. The company anticipates that the Brazilian operations will generate around $220 million in revenue during the first 12 months post-acquisition, with an expected gross margin of about 58%. The deal is expected to enhance both earnings and free cash flow per share for 2026 and 2027.

This acquisition occurs against the backdrop of a dynamic Brazilian offshore oil and gas sector, heavily influenced by major players like Petrobras. Tidewater’s expanded presence there allows it greater access to local tenders and improved leverage in deploying international tonnage. As of the announcement, all but one of WSUT's vessels are already operational in Brazil, suggesting minimal disruption during transition and immediate commercial engagement.

Pending regulatory and customary approvals, the transaction is projected to close by the end of the second quarter of 2026. This includes necessary nods from Brazil’s antitrust body, CADE. Tidewater’s strategic financial maneuvers, including refinancing actions in 2025, bolster its balance sheet, preparing for this expansion while aiming to maintain a net leverage ratio below 1.0x. Piper Sandler advises on this transaction, with Skadden, Arps, Slate, Meagher & Flom LLP providing legal counsel.