Core Viewpoint - Tidewater Inc. has announced a definitive agreement to acquire Wilson Sons Ultratug Participações S.A. and its affiliate Atlantic Offshore Services S.A. for an enterprise value of approximately $500 million, including the assumption of existing debt [1][7]. Strategic Rationale - The acquisition of WSUT is seen as a significant milestone for Tidewater, enhancing its presence in the Brazilian offshore vessel market, which is one of the largest globally [3][4]. - WSUT has a strong reputation as a shipowner and operator, with 21 out of 22 vessels currently active in Brazil, allowing Tidewater to leverage this asset base [3]. - Brazil is identified as an attractive market for Tidewater due to its scale in the offshore industry, particularly for vessels that are predominantly Brazilian-built, which provides competitive advantages in local tendering processes [4]. Financial Expectations - The WSUT business is projected to generate approximately $220 million in revenue with a gross margin of about 58% in the first twelve months post-acquisition [5]. - Tidewater expects to incur around $14 million in annual general and administrative expenses related to the acquisition [5]. - The transaction is anticipated to deliver immediate financial accretion to earnings and free cash flow per share for 2026 and 2027 [6]. Fleet and Operational Impact - Post-transaction, Tidewater's fleet will expand from 213 to 231 offshore support vessels (OSVs), significantly increasing its operational capacity in Brazil [6]. - The acquisition will establish Tidewater as a leading provider of Brazilian-built PSVs, with 19 of WSUT's PSVs being Brazilian-built, which receive operational priority in Brazil [6]. - WSUT's existing contracts provide a backlog of approximately $441 million, with potential for increased earnings as contracts roll over to current market rates [6]. Transaction Details - The acquisition will be funded through cash on hand, and WSUT's existing debt of approximately $261 million will be rolled over as part of the transaction [7]. - The transaction has been unanimously approved by Tidewater's Board of Directors and is expected to close in late Q2 2026, pending regulatory approvals [8].