U.S.-based offshore supply vessel company Tidewater has completed its merger with rival Gulfmark Offshore, thereby creating a new global leader in the offshore support vessel sector in terms of total fleet size.
Tidewater Inc. (NYSE: TDW) announced the closing of the deal on Thursday with support from over 99% of shareholders from both companies. All closing conditions for the combination have also been met.
GulfMark’s common stock will cease trading on the New York Stock Exchange as of the market close today.
Under the terms of the all-stock agreement announced in back in July, GulfMark stockholders will receive 1.100 shares of Tidewater common stock for each share of GulfMark common stock held, leaving GulfMark shareholders with approximately 26% of the combined company and Tidewater as the surviving entity.
Concurrent with the closing, $100 million of existing GulfMark debt will also be repaid.
“We’re excited to welcome the GulfMark team to Tidewater, and we look forward to commencing the work of integrating our fleets and shore-base operations in order to quickly and fully realize the strategic and financial benefits of this business combination,” said Tidewater’s President and Chief Executive Officer, John Rynd. “A combined Tidewater and GulfMark will provide employees with more opportunities as part of a global leader with a deep commitment to safety and reliability, offer customers a broad range of highest quality, cost-effective support vessel services worldwide, and deliver to stockholders competitive returns on invested capital and scope for significant growth in revenue and free cash flow in an improving offshore market.”
The combined company now operates around 375 vessels operating across the globe.