MarketplaceAdvisors Opens Bidding Process for 210-Plus Convenience Stores/Gas Stations

Kiel Bros. (Tobacco Road) stores are located in southern and central Indiana, northern and central Kentucky, and southern Illinois

COLUMBUS, Ind., Oct. 23 -- MarketplaceAdvisors, LLC (MPA) today announced commencement of the bidding process for more than 210 convenience stores/gas stations currently owned by Kiel Bros. Oil Co., Inc (Kiel Bros.).

The sealed-bid auction sale covers convenience stores/gas stations in southern and central Indiana, northern and central Kentucky, and southern Illinois. Through this sale, interested parties, including both large strategic buyers and smaller entrepreneurial operators, will have the opportunity to bid on one, some or all of the stores.

The largest concentrations of stores are in the Columbus, Evansville and Indianapolis areas of Indiana; and the Lexington and Louisville areas of Kentucky. In addition to selling open and operating convenience stores, Kiel Bros. will also sell seven closed stores, two vacant parcels and its corporate headquarters building in Columbus, Indiana.

All bids and deposits are due to MarketplaceAdvisors, which is managing and conducting the sale on behalf of Kiel Bros., by December 5. MPA expects to begin notifying winning bidders before the end of the year. Information on how to bid and detailed property description packages for Sealed Bid Sale 105 are available online at www.marketplaceadvisors.com or by calling toll free 1-877-298-3381.

In addition, MarketplaceAdvisors is holding three how-to-bid seminars for this sale:

   - Louisville, Kentucky - November 11; 1 p.m.; Executive Inn Hotel,
     978 Phillips Lane, Louisville.
   - Evansville, Indiana - November 12; 10 a.m.; Holiday Inn Conference
     Center, 4101 U.S. Highway 41 North, Evansville.
   - Indianapolis, Indiana - November 13; 10 a.m.; Airport Radisson,
     2500 South High School Road, Indianapolis.

A family-owned business founded in 1941, Kiel Bros. operates the stores primarily under the Tobacco Road name. Through branded-supply agreements, a majority of the stores sell the gasoline brands of BP or Marathon; other stores sell unbranded gas. Successful bidders will enter into long-term petroleum supply agreements with the seller that will allow for the continued use of gasoline brands and logos at each store. Also as part of the transaction, Kiel Bros. will retain most environmental remediation obligations associated with the sites, prior to and after closing.

"We have made the strategic decision to return to our petroleum products wholesale and distribution roots and to exit the direct retail operation of our stores," said Gregory Pence, Kiel Bros. president. "As a regional retail chain, we have been challenged to achieve the same economies of scale as larger chains, or the flexibility and low overhead of individual entrepreneurs. We think these are the two types of operators who will recognize the greatest opportunity in this sale.

"In addition, we expect that a number of our employees and current dealers will have an interest in the locations because they already know the stores and customers," Pence added.

MPA Managing Partner Greg Landry commented: "Bidders will have a unique opportunity to acquire the long-term right to an established cash flow for a significant period of time and also the ability to continue to offer known brands to a loyal customer base. And because the transactions will be in the form of leases, the sale offers a lower cost of entry. Potential operators will not need to raise the additional capital that would be required for an outright purchase of the land, building and equipment."

MarketplaceAdvisors, LLC is a specialized asset-sale advisory firm that utilizes a customized, dual-track approach that simultaneously markets a group of stores, or a select subset of those stores, to targeted strategic or financial buyers, while also marketing individual stores, groups of stores and the entire population of stores to entrepreneurs, regional operators and others through a flexible and confidential sealed-bid auction.

The company is headquartered in Scottsdale, Arizona, with offices in Cleveland and Chicago. MPA is staffed with a team of experienced and knowledgeable c-store industry veterans and is an affiliate of Trefethen & Company, one of the leading investment banking companies focused on the convenience store and retail petroleum industry. For more information on MPA, visit www.marketplaceadvisors.com .