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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 15, 1998
APPLIED ANALYTICAL INDUSTRIES, INC.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 0-21185 04-2687849
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(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
5051 New Centre Drive
Wilmington, North Carolina 28403
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(Address of Principal Executive Offices)
(Zip Code)
(910) 392-1606
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former name or address, if changed from last report)
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Item 5. Other Events.
On September 15, 1998, Applied Analytical Industries, Inc. (the
"Company") issued a press release announcing the Company's acquisition of Kansas
City Analytical Services, Inc. The press release is filed as Exhibit 99.1 hereto
and is incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
(a) Financial Statements
Not applicable.
(b) Pro Forma Financial Information
Not applicable.
(c) Exhibits
Exhibit 99.1 -- Press release dated September 15, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: September 18, 1998
APPLIED ANALYTICAL INDUSTRIES, INC.
By: /s/ R. Forrest Waldon
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R. Forrest Waldon
Secretary
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EXHIBIT INDEX
Exhibit No. Exhibit
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Exhibit 99.1 Press release dated September 15, 1998
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FOR IMMEDIATE RELEASE
September 15, 1998
For: Applied Analytical Industries, Inc.
Contact: Pamela S. Dietze
Investor Relations Coordinator
Applied Analytical Industries, Inc.
(910) 392-1606
APPLIED ANALYTICAL INDUSTRIES, INC. (AAI)
ACQUIRES KANSAS CITY ANALYTICAL SERVICES, INC.
Wilmington, North Carolina - Applied Analytical Industries, Inc. (NASDAQ AAII)
announced today that it has acquired Kansas City Analytical Services, Inc.
(KCAS), a leading bioanalytical and pharmaceutical analysis laboratory located
near Kansas City, Kansas.
AAI acquired all of the outstanding shares of KCAS for $5.2 Million in cash and
approximately 27 thousand shares of AAI common stock, for an aggregate purchase
price of $5.5 Million.
KCAS has provided analytical testing services to the pharmaceutical industry for
20 years and is expected to have sales of approximately $7 Million for its
fiscal year ending October 31, 1998. The company employs approximately 90
scientists, technicians and support personnel, including Dr. William Mason, the
founder of KCAS, who will continue managing the Company's operations. KCAS has a
strong balance sheet and a history of profitable operations.
Commenting on the merger, Dr. Frederick Sancilio, CEO of AAI, stated that "The
KCAS acquisition will significantly strengthen our Company's global
bioanalytical capabilities and will provide synergies with our current
bioanalytical capabilities in Europe and China. Dr. Mason and his team have
built a great company and we look forward to our combined success."
Dr. Sancilio also indicated that the Company's recent New Jersey laboratory
expansion combined with KCAS' laboratories increases both the geographic breadth
and scientific depth of the company's client service capabilities.
AAI is a leading contract research and development organization (CRO) providing
pharmaceutical product development and support services to the worldwide
pharmaceutical and biotechnology industries. The Company offers seamless
outsourcing as well as an integrated broad spectrum of pharmaceutical services,
both clinical and non-clinical. Additionally, AAI leverages its drug development
expertise to generate licensing and royalty revenues by licensing internally
developed drugs and drug technologies to pharmaceutical client companies
worldwide.
Information in the press release contains certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These statements involve risks and
uncertainties that could cause actual results to differ materially, including
without limitation, the ability of acquired businesses to be integrated with
AAI's operations, actual operational performance, the ability to acquire and
maintain large client contracts, the ability to hire and retain qualified
employees and other items that may cause the actual results to differ
materially, which may be discussed in the Company's recent Form 10-K filings,
its registration statement, as amended, and other filings with the Securities
and Exchange Commission.
