Houston-based offshore vessel leader Tidewater Inc. is making a significant move into Brazil. The company has announced a deal to buy Wilson Sons Ultratug Participações S.A. (WSUT) and its affiliate, Atlantic Offshore Services S.A., for about $500 million.
If this deal goes through, Tidewater will greatly increase its presence in Brazil — expanding its fleet from 6 to 28 vessels and growing its global fleet to a total of 231, including 213 offshore support vessels (OSVs).
Brazil is one of the most active offshore markets in the world, driven by development led by Petrobras and a steady flow of deepwater projects. This acquisition is especially strategic because 19 out of WSUT’s 22 platform supply vessels are built in Brazil.
This is important because Brazilian-built vessels get priority for local operations and qualify for the Brazilian Special Registry (REB), which offers advantages in the local market and flexibility regarding flag status. In a heavily regulated market, this is a significant advantage.
“The Brazilian offshore vessel market is one of the largest and most attractive worldwide,” said Quintin Kneen, Tidewater’s President and CEO. “WSUT provides a unique chance to enter Brazil on a large scale with a fleet that is nearly 90% Brazilian-built.”
The acquisition isn’t just about increasing fleet size; it comes with about $441 million in contracted work, as 21 out of 22 vessels are currently active in Brazil.
Management noted that many of the contracts are priced below current market rates, positioning Tidewater for potential gains as contracts are renewed in a rising day-rate market.
With a planned close by late Q2 2026, Tidewater anticipates that the WSUT business will generate around $220 million in revenue and yield a gross margin of about 58% in its first year.
The deal will be financed using cash from Tidewater’s balance sheet, while WSUT's existing $261 million debt — supported by Brazil’s development bank BNDES and Banco do Brasil — is expected to be carried over.
Kneen referred to the financing as offering a “significant cost of capital advantage,” providing long-term, low-cost funding for the deal.
Looking ahead to the expected end of June 2026 close, Tidewater estimates a net leverage ratio of below 1.0x, strengthening its position as having one of the best balance sheets in the OSV sector following its refinancing efforts in 2025.
The deal is still pending approval from Brazil’s antitrust authority and other regulators, with a closing aimed for late Q2 2026.
Piper Sandler is advising Tidewater on this transaction, with legal support from Skadden, Arps, Slate, Meagher & Flom and Machado, Meyer, Sendacz e Opice Advogados.
Tidewater management will hold a conference call at 8:00 a.m. Central Time today to discuss the acquisition in more detail.