Kiel Bros. to Sell C-Stores, Operations to Bulk Petroleum

COLUMBUS, Ind.-- Kiel Bros. Oil Company Inc. and Marinette, Wis.-based Bulk Petroleum Corp. have entered into a definitive asset purchase agreement whereby Bulk Petroleum will acquire substantially all of Kiel's convenience store locations and its wholesale petroleum operations. Kiel's retail convenience stores (the 48th largest chain in the United States) and wholesale fuel dealers are located throughout central and southern Indiana and northern and central Kentucky. As part of this transaction, the companies also announced that Bulk Petroleum would acquire Kiel's corporate headquarters facility in Columbus, Ind. and expects to retain Kiel's corporate headquarters staff, store operations staff and store level employees, according to a company release.

"We are very pleased to be acquiring such a quality chain of convenience stores and experienced network of petroleum dealers. The combination of the strong market presence of the Tobacco Road retail store locations and the experienced Kiel management team will provide us with a tremendous platform for future profitability and growth," said Darshan S. Dhaliwal, Bulk Petroleum president.

Kiel retained marketplace advisors to conduct a sealed-bid auction of individual retail convenience stores and a concurrently marketed sale of the entire store base to larger strategic operators. "Through this extensive evaluation of our strategic options, we feel that combining our company into Bulk Petroleum South will provide us with the economies of scale and improved operating efficiencies that we were seeking," said Gregory J. Pence, Kiel's president and CEO. "We feel that this business combination is the best alternative for our customers, dealers, vendors and employees as we move forward in this ever-challenging operating environment."

The completion of the sale is subject to the satisfaction of certain terms and conditions under the asset purchase agreement and is expected to close on or before June 30, 2004.