Tidewater Inc. ( TDW ) announced on Monday a definitive agreement to acquire Wilson Sons Ultratug Participações S.A. and its affiliate Atlantic Offshore Services S.A. (collectively WSUT) for approximately $500 million in cash, including assumed debt. The purchase will be funded with cash on hand.

The board has approved the deal, which is expected to close in the late second quarter of 2026, subject to regulatory and antitrust approvals, including from Brazil’s CADE.

Tidewater Expands Presence in Brazil

Chief Executive Quintin Kneen stated that the acquisition is intended to expand Tidewater’s presence in Brazil, noting that the local offshore vessel market is among the largest globally.

Kneen said, “The agreement to acquire WSUT marks yet another important milestone in the continued evolution of Tidewater. The Brazilian offshore vessel market is one of the largest and most compelling in the world and the addition of WSUT to the Tidewater fleet will enhance our presence in the country.”

WSUT operates 22 PSVs, 21 of which are in Brazil. The acquisition will boost Tidewater’s Brazilian fleet from six to 28 vessels and its global fleet to 231, including 213 OSVs and various support vessels.

Nearly 90% of WSUT’s fleet is built in Brazil, giving Tidewater a leading position in locally built PSVs and access to REB tonnage rights for potential import of international-flagged vessels.

Potential Impact on Tidewater’s Revenue

Tidewater expects WSUT to generate about $220 million in revenue and a 58% gross margin in the first 12 months post-closing, while adding $14 million in annual expenses.

WSUT’s $441 million contract backlog, much of it at below-market rates, offers Tidewater potential for higher earnings as contracts renew. The deal is expected to boost earnings and cash flow per share in 2026 and 2027.

WSUT’s $261 million debt, provided by BNDES and Banco do Brasil, will be rolled over, offering Tidewater low-cost, long-term financing. Net leverage is expected to remain below 1.0x after closing.

Tidewater held cash and cash equivalents of $428.225 million as of September 30, 2025.

TDW Price Action: Tidewater shares were down 0.52% at $73.00 during premarket trading on Monday. The stock is trading near its 52-week high of $74.20, according to Benzinga Pro data.