US-based Tidewater has entered into a definitive agreement to acquire all of the outstanding shares of Wilson Sons Ultratug Participações and its affiliate Atlantic Offshore Services (collectively WSUT) at an enterprise value of approximately US$500 million, including the assumption of WSUT's existing debt.
Tidewater said the acquisition will strengthen its offshore support vessel (OSV) position, as WSUT’s fleet consists of 22 platform supply vessel (PSVs). Pro forma for the transaction, Tidewater will own a fleet of 213 OSVs, bringing Tidewater’s total global fleet size to 231 vessels, including crewboats, tugs and maintenance vessels.
The transaction will also expand Tidewater’s current fleet of six vessels in Brazil to a total of 28. Tidewater said this will provide meaningful scale and the operational capability required to support the continued growth of the Brazilian offshore energy market.
WSUT’s fleet delivers approximately US$441 million of existing backlog, with many contracts currently on day rates materially lower than current market day rates, providing for expected significant earnings and free cash flow uplift as contracts roll over.
"The Brazilian offshore vessel market is one of the largest and most compelling in the world and the addition of WSUT to the Tidewater fleet will enhance our presence in the country," said Tidewater President and CEO Quintin Kneen.
"WSUT has an excellent reputation as both a shipowner and ship operator, with a fleet that is among the most impressive worldwide today. As of today, 21 of WSUT’s 22 vessels are active and working in Brazil, allowing Tidewater to commercialise this new asset base."
