Tidewater(US:TDW)2026-02-23 15:02Tidewater (NYSE: TDW) Acquisition of Wilson Sons Ultratug Offshore - Key Points Summary Company and Industry Overview - Company: Tidewater Inc. (NYSE: TDW) - Acquisition Target: Wilson Sons Ultratug Offshore - Industry: Offshore Supply Vessel (OSV) market, particularly focused on the Brazilian market Core Points and Arguments 1. Acquisition Announcement: Tidewater has entered into a definitive agreement to acquire Wilson Sons Ultratug Offshore for $500 million in an all-cash transaction [4][12] 2. Fleet Expansion: The acquisition will increase Tidewater's fleet in Brazil from 6 vessels to 28 vessels, significantly enhancing its presence in the world's largest offshore supply vessel market [5][8] 3. Regulatory Advantages: The vessels acquired come with regulatory protections under Brazilian law, providing a competitive edge over foreign vessels in local operations [6][10] 4. Financial Metrics: The Wilson Sons business is expected to generate approximately $220 million in revenue with a gross margin of about 58% over the first 12 months post-acquisition [14] 5. Debt Structure: The acquisition includes the assumption of approximately $261 million of debt with a weighted average cost of 3.6%, which is considered attractive for the overall transaction economics [12][13] 6. Market Outlook: There is a strong long-term growth outlook for the Brazilian market, supported by Petrobras' five-year plan and increasing demand from other operators [9][10][20] 7. Operational Synergies: While no significant G&A synergies are expected immediately, there is potential for revenue synergies through the REB capacity that the Wilson fleet provides [36][56] Additional Important Insights 1. Market Demand: The Brazilian market is currently short on vessels, with only 20% of vessels working in Brazil being international-flagged, indicating a strong demand for Brazilian-flagged vessels [10] 2. Fleet Quality: The Wilson fleet is noted for its consistent build quality and operational efficiency, which is expected to streamline supply chain management and technical planning [9][42] 3. Future Opportunities: Tidewater is exploring potential expansion opportunities beyond Brazil, particularly in West Africa, while also considering share repurchases if no suitable acquisitions are found [31][48] 4. Maintenance and CapEx: The fleet is in good condition, with 21 of the 22 vessels currently working, and future CapEx and maintenance schedules will be evaluated as the fleet integrates into Tidewater's operations [38][44] This summary encapsulates the key points from the conference call regarding Tidewater's acquisition of Wilson Sons Ultratug Offshore, highlighting the strategic importance of the deal and the anticipated benefits for Tidewater in the Brazilian offshore supply vessel market.