Tidewater has announced a definitive agreement to acquire all outstanding shares for Swire Pacific Offshore Holdings Limited (SPO), a subsidiary of Swire Pacific Limited, for approximately 190 million USD.
The acquisition will see Tidewater possess the industry’s largest fleet of OSVs, acquiring SPO’s fleet of 50, which consists of 29 AHTS vessels and 21 PSVs, and bringing Tidewater’s owned OSV fleet to a total of 203.
Marking a milestone in Tidewater’s company history, the company has identified roughly 45 million USD of annual run-rate cost synergies that will be targeted following consummation of the acquisition. Once completed, the company will retain the strongest balance sheet in the industry, with approximately 110 million USD on hand and full access to its existing undrawn 25 million USD revolving credit facility, as well as financial flexibility under existing indentures.
In addition to the acquisition of 50 OSVs; the transaction will see Tidewater add 18 large PSVs and 10 large AHTSs to its larger fleet.
Quintin Kneen, Tidewater’s President and Chief Executive Officer, said:The acquisition of Swire Pacific Offshore marks another important milestone in the strengthening of Tidewater’s leadership position as we capitalise on the recovery in the OSV industry. I am excited to have acquired a high-quality fleet with a strong reputation in the maritime sector globally.
I believe that the timing of this acquisition will allow Tidewater to capitalise on the continued improvement in the offshore supply vessel market, providing Tidewater with significant additional earnings and free cash flow generation potential as utilisation and day rates continue to improve. All 50 acquired vessels are currently active and working throughout the world, allowing Tidewater to immediately leverage this new asset base.
We see a great deal of industrial synergies in acquiring this fleet and believe we will be able to rapidly integrate these vessels into the existing Tidewater shore base support infrastructure. Further, we believe that we will be able to realise significant synergies at both the G&A and operating expense level of approximately $45 million, from the current run rates, within 24 months from the close of the Transaction.
