Tidewater Inc. (NYSE: TDW) is expanding its global offshore footprint with a $500 million all-cash acquisition of Wilson Sons Ultratug Participações S.A. and its affiliate Atlantic Offshore Services S.A. (collectively, “WSUT”). The transaction, which includes the assumption of approximately $261 million in existing debt, significantly scales Tidewater’s presence in Brazil—one of the world’s most active offshore energy markets.
The deal adds 22 platform supply vessels (PSVs) to Tidewater’s fleet. Pro forma for the acquisition, Tidewater will own 213 offshore support vessels (OSVs) and 231 total vessels globally, including crew boats, tug boats, and maintenance vessels.
The most immediate impact is geographic. Tidewater’s fleet in Brazil will expand from six vessels to 28, creating meaningful operating scale in a market widely viewed as structurally attractive due to sustained offshore development activity.
Notably, 19 of WSUT’s 22 PSVs are Brazilian-built. That distinction carries strategic weight. Brazilian-built vessels receive priority in local tenders and also provide access to Brazilian Special Registry (REB) tonnage rights. Through REB, Tidewater may import certain international-flagged vessels into Brazil while enjoying similar status to locally built ships.
In effect, the transaction provides both domestic positioning and optionality for additional fleet deployment.
WSUT brings approximately $441 million in existing backlog. According to Tidewater, many of those contracts are priced at day rates below current market levels, creating potential earnings leverage as contracts roll over.
Assuming a late second-quarter 2026 close, Tidewater expects the acquired business to generate roughly $220 million in revenue over the first twelve months, with gross margins around 58%. Annual G&A expenses are projected at approximately $14 million.
Management also characterized the deal as immediately accretive to 2026 and 2027 estimated earnings and free cash flow per share, though final outcomes will depend on closing timing, integration, and market conditions.
The acquisition will be funded with cash on hand. Tidewater intends to novate WSUT’s existing long-duration amortizing debt, provided by BNDES and Banco do Brasil, preserving what management describes as low-cost financing already embedded in the capital structure.
Following refinancing transactions in 2025 and this acquisition, Tidewater expects pro forma net leverage below 1.0x at closing, assuming a June 30, 2026 completion. A lower leverage profile could provide flexibility for future capital allocation decisions, subject to market conditions.
Brazil’s offshore sector remains one of the largest globally, with sustained activity in deepwater and pre-salt developments. Vessel supply dynamics, local content requirements, and regulatory structures create a market where scale and local tonnage matter.
For investors tracking the offshore services cycle, this transaction underscores a broader theme: operators are positioning for sustained utilization and disciplined fleet growth rather than speculative expansion. Consolidation also remains a key lever for improving operating leverage in a capital-intensive industry.
The transaction has been unanimously approved by Tidewater’s board and is expected to close late in the second quarter of 2026, pending regulatory approvals, including from Brazil’s antitrust authority (CADE).
As the offshore support vessel market continues to recalibrate following years of volatility, Tidewater’s Brazil-focused expansion signals confidence in long-term regional fundamentals—while also highlighting how capital structure discipline is shaping today’s consolidation playbook.
