The U.S. Defense Security Cooperation Agency notified Congress Tuesday of plans to sell a package of Tomahawk Block IV Torpedo Launched Land-Attack missiles, plus associated equipment, parts, training and logistical support, to the United Kingdom. If approved by Congress, this sale would generate an estimated $140 million in new revenue for principal contractor Raytheon Co. (NYSE:RTN).
Specifically, the UK will be buying up to 65 of Raytheon's Block IV All-Up-Round Torpedo Tube-Launched Tomahawk Land-Attack Missiles -- cruise missiles designed to be fired out of a submarine's torpedo tubes before going airborne. Containers for the missiles, test equipment, engineering support, and other related services would also be included in the sale.
DSCA noted that equipping the British with these missiles will improve the allied nation's military capabilities, and also enhance "weapon system standardization and interoperability" between U.S. and UK forces. DSCA further explained to Congress that the Royal Navy needs these missiles "to replenish those expended in support of coalition operations."
DSCA assured Congress that this sale "will not alter the basic military balance in the region" and will result in "no adverse impact on U.S. defense readiness."
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