Raytheon Customer Signs $750M Contract with U.S. Gov't for Foreign Military Sale
An international customer signed an agreement with the U.S. Government for a foreign military sale (FMS) of tube-launched, optically tracked, wireless-guided (TOW) missiles to be supplied by Raytheon Company (NYSE: RTN) in a deal valued at approximately $750 million.
Raytheon plans to deliver nearly 14,000 TOW missiles to the customer over a three-year period beginning in 2015. A resulting order is expected to be executed by the U.S. government with Raytheon in the coming weeks.
The order will allow Raytheon to further increase TOW's capability while delivering affordable precision to a key U.S. ally for the defense of its borders and sovereignty. This type of multiyear FMS arrangement drives down acquisition costs for the U.S. government and provides economies of scale.
The tube-launched, optically-tracked, wireless-guided (TOW) weapon system, with the multi-mission TOW 2A, TOW 2B, and TOW Bunker Buster missiles, is the premier long-range, precision anti-armor, anti-fortification and anti-amphibious landing weapon system used throughout the world today. The TOW weapon system is expected to be in service with the U.S. military beyond 2025. TOW is in service in more than 40 international armed forces and integrated on more than 15,000 ground, vehicle and helicopter platforms worldwide. Raytheon has delivered more than 675,000 TOW missiles to U.S. and allied warfighters.
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