TROMS ARCTURUS. Photo courtesy VARD
Houston-based offshore vessel giant Tidewater Inc. is making a major push into Brazil, announcing a definitive agreement to acquire Wilson Sons Ultratug Participações S.A. (WSUT) and its affiliate Atlantic Offshore Services S.A. in a deal valued at approximately $500 million.
If completed, the acquisition will more than quadruple Tidewater’s Brazilian presence — expanding its fleet in the country from 6 vessels to 28 — while increasing its global fleet to 231 vessels, including 213 offshore support vessels (OSVs).
Brazil remains one of the world’s most active and competitive offshore markets, driven by Petrobras-led development and a steady pipeline of deepwater work. What makes this deal particularly strategic is the fleet mix: 19 of WSUT’s 22 platform supply vessels are Brazilian-built.
That matters. Brazilian-built vessels receive priority in domestic operations and qualify for the Brazilian Special Registry (REB) — a structure that provides local-market advantages and flexibility around flag status. In a market where regulatory positioning can make or break utilization, that’s a meaningful edge.
“The Brazilian offshore vessel market is one of the largest and most compelling in the world,” said Quintin Kneen, Tidewater’s President and CEO. “WSUT presents a unique opportunity to enter Brazil in scale with a fleet that is almost 90% Brazilian-built.”
The acquisition isn’t just about fleet count — it comes with approximately $441 million in contracted backlog, with 21 of 22 vessels currently active in Brazil.
Management noted that many of the contracts are priced below today’s market rates, positioning Tidewater for potential upside as contracts roll over in a strengthening day-rate environment.
Assuming a late second-quarter 2026 close, Tidewater expects the WSUT business to generate roughly $220 million in revenue and deliver a gross margin of about 58% over its first twelve months.
The transaction will be funded with cash from Tidewater’s balance sheet, while WSUT’s existing $261 million in debt — backed by Brazil’s development bank BNDES and Banco do Brasil — is expected to be rolled over.
Kneen described the financing as a “significant cost of capital advantage,” effectively embedding long-term, low-cost funding into the deal.
Pro forma for the expected June 30, 2026 close, Tidewater projects a net leverage ratio below 1.0x, reinforcing what management says is one of the strongest balance sheets in the OSV sector following its 2025 refinancing efforts.
The deal remains subject to approval from Brazil’s antitrust authority and other regulators, with closing targeted for late Q2 2026.
Piper Sandler is advising Tidewater on the transaction, with legal counsel provided by Skadden, Arps, Slate, Meagher & Flom and Machado, Meyer, Sendacz e Opice Advogados.
Tidewater management is hosting a conference call at 8:00 a.m. Central Time today to discuss the acquisition in further detail.
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