International customer signs agreement with USG valued at $750 M for Raytheon's TOW missiles
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.
Global Short-Range Air-Defence Missile System Market 2016-2020
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.
Source : Raytheon Corporation (NYSE: RTN) - view original press release