Houston-based offshore vessel company Tidewater Inc. is taking a significant step into the Brazilian market by announcing a definitive agreement to acquire Wilson Sons Ultratug Participações S.A. (WSUT) and its affiliate Atlantic Offshore Services S.A. The deal, valued at approximately $500 million, is set to dramatically expand Tidewater’s operations in Brazil, increasing its fleet from six vessels to 28. This acquisition will also elevate Tidewater’s global fleet to a total of 231 vessels, including 213 offshore support vessels (OSVs).
Tidewater’s Strategic Move into Brazil
Brazil’s offshore market is one of the most competitive globally, largely driven by ongoing development led by Petrobras and a consistent pipeline of deepwater projects. The acquisition is particularly strategic due to the composition of WSUT’s fleet. Of the 22 platform supply vessels, 19 are Brazilian-built, which offers Tidewater a significant advantage. Brazilian-built vessels receive priority for domestic operations and qualify for the Brazilian Special Registry (REB), providing essential local-market benefits and flexibility regarding flag status.
“The Brazilian offshore vessel market is one of the largest and most compelling in the world,” stated 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.”
Financial Implications and Future Prospects
The acquisition is not just about increasing fleet size; it also brings an estimated $441 million in contracted backlog. Currently, 21 of the 22 vessels are active in Brazil, with many contracts priced below current market rates. This positions Tidewater for potential gains as contracts are renewed in a strengthening day-rate environment. Assuming the deal closes by June 30, 2026, Tidewater anticipates generating around $220 million in revenue from the WSUT business within its first year, alongside a gross margin of about 58%.
The transaction will be financed using cash from Tidewater’s balance sheet, while WSUT’s existing debt of $261 million, supported by Brazil’s development bank BNDES and Banco do Brasil, is expected to be rolled over. Kneen emphasized that this financing structure provides a “significant cost of capital advantage,” effectively embedding long-term, low-cost funding into the acquisition. Following the expected closing, Tidewater projects a net leverage ratio below 1.0x, reinforcing its position as one of the strongest balance sheets in the OSV sector after its refinancing efforts in 2025.
The deal is still pending approval from Brazil’s antitrust authority and other regulatory bodies, with a closing target set for late Q2 2026. Piper Sandler is advising Tidewater on the transaction, with legal support from Skadden, Arps, Slate, Meagher & Flom and Machado, Meyer, Sendacz e Opice Advogados. Tidewater management will host a conference call at 8:00 a.m. Central Time today to provide further insights into the acquisition.