Houston-based offshore vessel owner Tidewater has completed its latest major acquisition, significantly strengthening its presence in the Brazilian offshore market.
The NYSE-listed company has officially closed its $500 million acquisition of Wilson Sons Ultratug (WSUT), a transaction first announced earlier this year.
Quintin V. Kneen, President and CEO of Tidewater, welcomed the completion of the deal and the integration of WSUT’s workforce and fleet into the company.
“We are pleased to announce the closing of the WSUT acquisition, and we are excited to welcome our new employees to Tidewater,” Kneen said.
According to Kneen, WSUT’s fleet of 22 platform supply vessels (PSVs) represents a strong strategic fit for Tidewater and further reinforces the company’s position in the global offshore support vessel market.
“The WSUT fleet of 22 PSVs is an excellent complement to the Tidewater fleet and further expands our leading global market position in OSVs,” he added.
A key element of the acquisition is the presence of 19 Brazilian-built vessels within the WSUT fleet. Speaking recently to the Seatrade Maritime New Podcast, Kneen highlighted these locally built vessels as an important factor in strengthening Tidewater’s long-term position in Brazil.
Before the acquisition, Tidewater operated in the Brazilian market as an international player, facing the risk that its vessels could be taken off hire in favour of locally flagged or built tonnage under Brazil’s cabotage regulations.
The newly acquired Brazilian-built fleet changes that position considerably.
“Now with this base of 19 vessels, we’re a permanent fixture in Brazil and it allows us to bring in extra vessels,” Kneen explained.
“When you have a Brazilian built vessel, you can bring in other vessels that are international-flagged and get that same protection. So, it’s great from that perspective.”
Another advantage is the standardization of the 19 Brazilian built ships. They were all built to the same design, in the same shipyard, meaning commonality of onboard equipment. This should make crew training and maintenance operations easier.
Tidewater anticipates full integration of Wilson Sons Ultratug into Tidewater operations by early 2027.
The deal also advances Tidewater’s consolidation strategy in the offshore vessel industry. The company has become a major consolidator in the industry in recent years.
Tidewater acquired Swire Pacific Offshore in a $190 million deal in April 2022. It followed that deal with another big acquisition in late 2023, buying a fleet of 37 platform supply vessels from Solstad for $580 mln.
The inclusion of WSUT and its 22 PSVs expands Tidewater’s offshore fleet globally and solidifies a more permanent and strategically protected position in one of Latin America’s most important offshore markets.
