Houston-headquartered OSV owner Tidewater has struck a deal with Norway’s Solstad Offshore to purchase its entire fleet of platform supply vessels for $577m.
The deal will see the New York-listed firm, with a fleet of 228 vessels, add 37 PSVs and become the largest owner and operator in this segment. The combined fleet will include 14 battery hybrids and two LNG-powered vessels.
The acquired vessels have a total backlog of around $620m including options, and all are currently active and working, principally in the North Sea but also in Brazil, Australia and West Africa.
The transaction will be funded through a combination of new debt and cash on hand. Tidewater has received commitments from a group of financial institutions, led by the company’s existing lender, DNB Bank, for a three-year senior secured credit facility of up to $325m.
The completion of the transaction, which was unanimously approved by Tidewater’s board of directors, is contingent on third-party approvals such as certain charterers and competition authorities, buyers’ financing and fulfillment of conditions precedent. The parties may abandon the transaction if it is not completed by June 30, 2023.
The offshore employees associated with the PSV Fleet will be offered employment with Tidewater, as will certain onshore employees.
As for Solstad, the move reduces its debt by approximately NOK6bn and repositions the focus on anchor handlers and subsea vessels, which the company said would increase its presence in the renewable energy segment, and expand its service offering, including ROV services, tooling and project support. After the transaction, Solstad will have 41 vessels in operation and six non-operational units and considered to be sold.
