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Ultra Electronics joint venture awarded $220m US Navy option

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Ultra Electronics joint venture awarded $220m US Navy option

Thu, 12 October 2017
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Ultra Electronics joint venture awarded $220m US Navy option
Ultra Electronics Holdings Quote more

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Date: 17:15

(ShareCast News) - Ultra Electronics announced on Thursday that ERAPSCO - its 50/50 joint venture with the ECP division of Sparton Corporation - has been awarded a modification to exercise options under an indefinite delivery / indefinite quantity (IDIQ) contract for US Navy sonobuoys.
The FTSE 250 company said the work was expected to be completed by October 2020.

It said the IDIQ option exercise was valued at $219.76, and enabled ERAPSCO to extend continuous production.

As with previous options, Ultra said it would exclude this IDIQ option value from its order book.

"I am very pleased with this extension to our current IDIQ," said Ultra Electronics chief executive Rakesh Sharma.

"Not only does it ensure continuous production it means we can deliver seamless service to our major customer the US Navy in the strategic area of Anti-Submarine Warfare."