Tidewater Acquires Wilson Sons Ultratug for $500M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy TDW?
Source: seekingalpha
- Acquisition Overview: Tidewater announced its agreement to acquire Wilson Sons Ultratug and its affiliate Atlantic Offshore Services for approximately $500 million, significantly enhancing its market position in the offshore supply vessel sector.
- Fleet Expansion: The acquisition will increase Tidewater's fleet from 213 to 231 vessels, including 22 platform supply vessels, thereby enhancing its global operational capacity to meet growing market demands.
- Brazil Market Potential: Post-acquisition, Tidewater's fleet in Brazil will expand from six to 28 vessels, strengthening its operational capabilities in the Brazilian offshore energy market and reflecting the region's long-term growth potential.
- Strategic Importance: Tidewater's CEO Quintin Kneen emphasized that Brazil's offshore industry is substantial and has favorable long-term fundamentals, positioning the acquisition as a strategic move to bolster the company's competitiveness in the global market.
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Analyst Views on TDW
Wall Street analysts forecast TDW stock price to fall
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 73.380
Low
65.00
Averages
65.00
High
65.00
Current: 73.380
Low
65.00
Averages
65.00
High
65.00
About TDW
Tidewater Inc. is an owner and operator of offshore support vessels providing offshore energy exploration, production and offshore wind activities worldwide. The Company’s segments include Americas, Asia Pacific, Middle East, Europe/Mediterranean and West Africa. Its vessels and associated services support all phases of offshore crude oil and natural gas (also referred to as oil and gas) exploration activities, field development, production and maintenance, as well as windfarm development and maintenance. Its services include transporting supplies and personnel necessary to sustain drilling, workovers, production activities, field abandonment, dismantlement and restoration activities; offshore construction and seismic and subsea support; geotechnical survey support for windfarm construction, and a variety of other specialized services such as pipe and cable laying. It offers a diversified fleet of offshore service vessels, with around 211 vessels serving customers in over 30 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tidewater Acquires Wilson Sons Ultratug for $500 Million
- Transaction Overview: Tidewater has entered into a definitive agreement to acquire all outstanding shares of Wilson Sons Ultratug for an enterprise value of approximately $500 million, significantly enhancing Tidewater's market position in Brazil.
- Fleet Expansion: The acquisition increases Tidewater's fleet from 213 to 231 vessels, including 22 PSVs, further solidifying its leadership in the offshore support vessel market.
- Financial Benefit Expectations: WSUT's business is expected to generate approximately $220 million in revenue and a gross margin of 58% in the first year, with contract rollovers anticipated to provide significant earnings and free cash flow uplift.
- Financing Advantage: Tidewater plans to novate WSUT's low-cost, long-term debt, which is expected to provide a significant cost of capital advantage, further enhancing the company's financial flexibility.
See More
Tidewater Acquires Wilson Sons Ultratug for $500M
- Acquisition Overview: Tidewater announced its agreement to acquire Wilson Sons Ultratug and its affiliate Atlantic Offshore Services for approximately $500 million, significantly enhancing its market position in the offshore supply vessel sector.
- Fleet Expansion: The acquisition will increase Tidewater's fleet from 213 to 231 vessels, including 22 platform supply vessels, thereby enhancing its global operational capacity to meet growing market demands.
- Brazil Market Potential: Post-acquisition, Tidewater's fleet in Brazil will expand from six to 28 vessels, strengthening its operational capabilities in the Brazilian offshore energy market and reflecting the region's long-term growth potential.
- Strategic Importance: Tidewater's CEO Quintin Kneen emphasized that Brazil's offshore industry is substantial and has favorable long-term fundamentals, positioning the acquisition as a strategic move to bolster the company's competitiveness in the global market.
See More
Tidewater Acquires WSUT to Expand Brazilian Market Presence
- Acquisition Agreement: Tidewater Inc. announced a definitive agreement to acquire Wilson Sons Ultratug Participações S.A. and its affiliate Atlantic Offshore Services S.A. for approximately $500 million in cash, funded by cash on hand, with the deal expected to close in late Q2 2026 pending regulatory approvals, including from Brazil's CADE.
- Market Expansion in Brazil: This acquisition will increase Tidewater's fleet in Brazil from six to 28 vessels, raising its global fleet to 231, significantly enhancing its competitive position in one of the world's largest offshore vessel markets, as stated by CEO Quintin Kneen, marking an important milestone in the company's evolution.
- Revenue Growth Potential: WSUT is expected to generate about $220 million in revenue and a 58% gross margin in the first 12 months post-acquisition, while adding $14 million in annual expenses; WSUT's $441 million contract backlog offers potential for higher earnings as contracts renew.
- Low-Cost Financing Advantage: The $261 million debt from WSUT will be rolled over to Tidewater, providing low-cost, long-term financing, with net leverage expected to remain below 1.0x after closing, enhancing the company's financial stability.
See More
Tidewater to Acquire Wilson Sons Ultratug for $500 Million
- Acquisition Overview: Tidewater Inc. announced its 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, indicating a proactive strategy in expanding its business.
- Funding Source: The acquisition will be funded from cash on hand, demonstrating the company's financial stability while pursuing strategic investments aimed at enhancing its market competitiveness.
- Board Approval: The transaction has been unanimously approved by Tidewater's Board of Directors, reflecting management's confidence in the acquisition and expectations for future growth.
- Transaction Timeline: The deal is expected to close in late Q2 2026, providing Tidewater ample time for integration and strategic planning to ensure a smooth transition post-acquisition.
See More
Tidewater Inc. to Acquire Wilson Sons Ultratug for $500 Million
- Acquisition Overview: Tidewater Inc. announced a definitive agreement to acquire Wilson Sons Ultratug Participações S.A. for an enterprise value of approximately $500 million, including the assumption of WSUT's existing debt of about $261 million, significantly enhancing Tidewater's market position in Brazil.
- Market Potential Analysis: CEO Quintin Kneen emphasized that Brazil's offshore vessel market is one of the largest globally, and with nearly 90% of WSUT's fleet being Brazilian-built, this acquisition will improve Tidewater's competitiveness in local tendering processes.
- Financial Expectations: WSUT is projected to generate approximately $220 million in revenue and a gross margin of 58% over the next 12 months, while incurring about $14 million in annual G&A expenses, providing strong cash flow support for Tidewater.
- Strategic Development Direction: This acquisition is expected to lower Tidewater's net leverage ratio below 1.0, and combined with substantial near-term free cash generation, it enhances the company's flexibility for future capital deployment opportunities, further solidifying its leading position in the industry.
See More
Sagil Capital Fully Exits Tidewater Position, Selling 201,763 Shares
- Complete Exit: Sagil Capital fully exited its Tidewater position by selling 201,763 shares in Q4 for an estimated $10.76 million, reflecting both share price changes and a decline in position value, indicating a cautious outlook on the company's future performance.
- Stable Quarterly Performance: Tidewater reported revenue of $341.1 million in the latest quarter, essentially flat year-over-year, with adjusted EBITDA at $137.9 million; despite stable performance, Sagil's exit may suggest concerns about future growth potential.
- Strong Market Performance: As of February 11, Tidewater's stock price stood at $71.16, up 29.6% year-over-year, significantly outperforming the S&P 500's approximately 14% gain, indicating market recognition of its business, but also potentially prompting profit-taking by investors.
- Cautious Future Outlook: Although Tidewater's vessel utilization is near 76% with average day rates at $22,798, in capital-intensive industries, timing on entry and exit is crucial, and Sagil's exit may reflect a strategy to reduce risk exposure.
See More
Tidewater Acquires Wilson Sons Ultratug for $500 Million
- Transaction Overview: Tidewater has entered into a definitive agreement to acquire all outstanding shares of Wilson Sons Ultratug for an enterprise value of approximately $500 million, significantly enhancing Tidewater's market position in Brazil.
- Fleet Expansion: The acquisition increases Tidewater's fleet from 213 to 231 vessels, including 22 PSVs, further solidifying its leadership in the offshore support vessel market.
- Financial Benefit Expectations: WSUT's business is expected to generate approximately $220 million in revenue and a gross margin of 58% in the first year, with contract rollovers anticipated to provide significant earnings and free cash flow uplift.
- Financing Advantage: Tidewater plans to novate WSUT's low-cost, long-term debt, which is expected to provide a significant cost of capital advantage, further enhancing the company's financial flexibility.
See More
Tidewater Acquires Wilson Sons Ultratug for $500M
- Acquisition Overview: Tidewater announced its agreement to acquire Wilson Sons Ultratug and its affiliate Atlantic Offshore Services for approximately $500 million, significantly enhancing its market position in the offshore supply vessel sector.
- Fleet Expansion: The acquisition will increase Tidewater's fleet from 213 to 231 vessels, including 22 platform supply vessels, thereby enhancing its global operational capacity to meet growing market demands.
- Brazil Market Potential: Post-acquisition, Tidewater's fleet in Brazil will expand from six to 28 vessels, strengthening its operational capabilities in the Brazilian offshore energy market and reflecting the region's long-term growth potential.
- Strategic Importance: Tidewater's CEO Quintin Kneen emphasized that Brazil's offshore industry is substantial and has favorable long-term fundamentals, positioning the acquisition as a strategic move to bolster the company's competitiveness in the global market.
See More
Tidewater Acquires WSUT to Expand Brazilian Market Presence
- Acquisition Agreement: Tidewater Inc. announced a definitive agreement to acquire Wilson Sons Ultratug Participações S.A. and its affiliate Atlantic Offshore Services S.A. for approximately $500 million in cash, funded by cash on hand, with the deal expected to close in late Q2 2026 pending regulatory approvals, including from Brazil's CADE.
- Market Expansion in Brazil: This acquisition will increase Tidewater's fleet in Brazil from six to 28 vessels, raising its global fleet to 231, significantly enhancing its competitive position in one of the world's largest offshore vessel markets, as stated by CEO Quintin Kneen, marking an important milestone in the company's evolution.
- Revenue Growth Potential: WSUT is expected to generate about $220 million in revenue and a 58% gross margin in the first 12 months post-acquisition, while adding $14 million in annual expenses; WSUT's $441 million contract backlog offers potential for higher earnings as contracts renew.
- Low-Cost Financing Advantage: The $261 million debt from WSUT will be rolled over to Tidewater, providing low-cost, long-term financing, with net leverage expected to remain below 1.0x after closing, enhancing the company's financial stability.
See More
Tidewater to Acquire Wilson Sons Ultratug for $500 Million
- Acquisition Overview: Tidewater Inc. announced its 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, indicating a proactive strategy in expanding its business.
- Funding Source: The acquisition will be funded from cash on hand, demonstrating the company's financial stability while pursuing strategic investments aimed at enhancing its market competitiveness.
- Board Approval: The transaction has been unanimously approved by Tidewater's Board of Directors, reflecting management's confidence in the acquisition and expectations for future growth.
- Transaction Timeline: The deal is expected to close in late Q2 2026, providing Tidewater ample time for integration and strategic planning to ensure a smooth transition post-acquisition.
See More
Tidewater Inc. to Acquire Wilson Sons Ultratug for $500 Million
- Acquisition Overview: Tidewater Inc. announced a definitive agreement to acquire Wilson Sons Ultratug Participações S.A. for an enterprise value of approximately $500 million, including the assumption of WSUT's existing debt of about $261 million, significantly enhancing Tidewater's market position in Brazil.
- Market Potential Analysis: CEO Quintin Kneen emphasized that Brazil's offshore vessel market is one of the largest globally, and with nearly 90% of WSUT's fleet being Brazilian-built, this acquisition will improve Tidewater's competitiveness in local tendering processes.
- Financial Expectations: WSUT is projected to generate approximately $220 million in revenue and a gross margin of 58% over the next 12 months, while incurring about $14 million in annual G&A expenses, providing strong cash flow support for Tidewater.
- Strategic Development Direction: This acquisition is expected to lower Tidewater's net leverage ratio below 1.0, and combined with substantial near-term free cash generation, it enhances the company's flexibility for future capital deployment opportunities, further solidifying its leading position in the industry.
See More
Sagil Capital Fully Exits Tidewater Position, Selling 201,763 Shares
- Complete Exit: Sagil Capital fully exited its Tidewater position by selling 201,763 shares in Q4 for an estimated $10.76 million, reflecting both share price changes and a decline in position value, indicating a cautious outlook on the company's future performance.
- Stable Quarterly Performance: Tidewater reported revenue of $341.1 million in the latest quarter, essentially flat year-over-year, with adjusted EBITDA at $137.9 million; despite stable performance, Sagil's exit may suggest concerns about future growth potential.
- Strong Market Performance: As of February 11, Tidewater's stock price stood at $71.16, up 29.6% year-over-year, significantly outperforming the S&P 500's approximately 14% gain, indicating market recognition of its business, but also potentially prompting profit-taking by investors.
- Cautious Future Outlook: Although Tidewater's vessel utilization is near 76% with average day rates at $22,798, in capital-intensive industries, timing on entry and exit is crucial, and Sagil's exit may reflect a strategy to reduce risk exposure.
See More
