Offshore supply vessel (OSV) contractor Tidewater is acquiring rival Swire Pacific Offshore Holdings Ltd. (SPO), a subsidiary of Swire Pacific Ltd. for $190 million. The deal creates the industry’s largest fleet of OSVs with Swire’s fleet of 50 OSVs comprising 29 anchor-handling tug supply (AHTS) vessels and 21 platform supply vessels (PSVs). Tidewater will own a fleet of 174 OSVs, bringing its total fleet size to 203 vessels, including crew boats, tugboats, and maintenance vessels. Of the vessels added, 18 large PSVs and 10 large AHTSs have the age profile of large PSVs and large AHTSs in the Tidewater fleet improving by 0.6 years and 2.7 years, respectively.
“I believe that the timing of this acquisition will allow Tidewater to capitalize on the continued improvement in the offshore supply vessel market, providing Tidewater with significant additional earnings and free cash flow generation potential as utilization and day rates continue to improve,” said Quintin Kneen, president and chief executive of Tidewater. “All 50 acquired vessels are currently active and working throughout the world, allowing Tidewater to immediately leverage this new asset base. We believe that we will be able to realize significant synergies at both the G&A (general and administrative) and operating expense level of approximately $45 million, from the current run rates, within 24 months from the close of the transaction.”
The transaction is expected to close in the second quarter of 2022.
The deal also significantly enhances Tidewater’s presence in West Africa, provides for an expansion of its footprint in the rapidly growing Southeast Asia region, and is adds to its footprint in the Middle East.
“The addition of 25 OSVs in West Africa will nearly double Tidewater’s presence in the rapidly growing region, positioning it as the largest operator of active vessels in the region,” added Kneen. “Similarly, the addition of the SPO fleet in Southeast Asia and the Middle East positions Tidewater as the largest operator of active vessels across the entire region. The expansion of the Southeast Asia region, with 19 vessels currently operating, provides us with an opportunity to meaningfully participate in the oil and gas vessel market in the near term and provides a platform with which to pursue offshore wind development expected to advance in the region.”
