Capstone Advances M&A Pipeline to Strengthen National Platform

Rhea-AI Summary

Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, has provided an update on its M&A pipeline strategy. The company recently completed the acquisition of Carolina Stone, an $11 million revenue business, which has already been successfully integrated and is providing immediate revenue and EBITDA accretion.

The company reports being in active dialogue with several strategic operators while maintaining its disciplined approach to acquisitions. Notably, more than 50% of current sales come from owned brands, contributing to margin expansion. CEO Matthew Lipman emphasized the company's commitment to pursuing accretive transactions that align with their strategic vision.

Positive

• None.

Negative

• Heavy reliance on M&A strategy for growth could pose integration risks
• Acquisition-focused growth may require significant capital deployment

Company in active dialogues with strategic targets; recent accretive acquisition reinforces disciplined M&A playbook

NEW YORK CITY, NY / ACCESS Newswire / September 29, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today published an update on its M&A pipeline, highlighting recent progress and continued momentum. The company continues to execute on a rich pipeline of targets, following the successful acquisition and integration of Carolina Stone.

Key Highlights:

• Healthy Pipeline: Capstone is in active dialogue with several operators, each viewed as a strong strategic fit and consistent with past M&A successes.

• Disciplined Approach: The company continues to emphasize accretive transactions, attractive valuations, and long-term value creation.

• Platform Strength: More than half of current sales come from owned brands, supporting margin expansion and defensible market share.

• Recent Success: The Carolina Stone acquisition has been completed and integrated, expanding reach in the Southeast and adding immediate revenue/EBITDA accretion.

• Capital Backing: A flexible capital structure and experienced management team provide capacity to pursue high-quality acquisitions.

"Disciplined, accretive M&A has been central to our strategy from day one, and our current pipeline continues to validate that approach," said Matthew Lipman, Chief Executive Officer of Capstone. "With a healthy funnel and a high bar for quality, we will continue to pursue opportunities that expand our platform and deliver durable value."

The company's pipeline update comes on the heels of its acquisition of Carolina Stone, an $11 million revenue business in a high-growth construction market. The transaction delivered immediate revenue and EBITDA accretion and broadened Instone's Southeast customer base.

Capstone is backed by a flexible capital structure and a management team with deep sector expertise. The company remains committed to executing its disciplined M&A playbook, maintaining a focus on strategic fit, attractive valuations, and accretive long-term growth.

"As CEO, I'm grateful to have you with us on this journey," said Lipman. "We will have more exciting updates to share soon."

Read the full pipeline update on Capstone's website.

About Capstone Holding Corp.

Capstone Holding Corp. (NASDAQ:CAPS) is a diversified platform of building products businesses focused on distribution, brand ownership, and acquisition. Through its Instone subsidiary, Capstone serves 31 U.S. states, offering proprietary stone veneer, hardscape materials, and modular masonry systems. The company's strategy combines disciplined M&A, operational efficiency, and a growing portfolio of owned brands to build a scalable and durable platform.

Investor Contact

Investor Relations
Capstone Holding Corp.
investors@capstoneholdingcorp.com
www.capstoneholdingcorp.com

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to future events and performance, including guidance regarding revenue and EBITDA targets, M&A strategy, use of capital, and operating outlook. Actual results may differ materially from those projected due to a range of factors, including but not limited to acquisition timing, macroeconomic conditions, and execution risks. Please review the Company's filings with the SEC for a full discussion of risk factors. Capstone undertakes no obligation to revise forward- looking statements except as required by law.

SOURCE: Capstone Holding Corp.

View the original press release on ACCESS Newswire

FAQ

What is Capstone's (NASDAQ:CAPS) latest acquisition?

Capstone recently acquired Carolina Stone, an $11 million revenue business in the Southeast construction market, which has already been integrated and is providing immediate revenue and EBITDA accretion.

How much of Capstone's (CAPS) sales come from owned brands?

More than 50% of Capstone's current sales come from owned brands, which supports margin expansion and defensible market share.

What is Capstone's (NASDAQ:CAPS) M&A strategy?

Capstone emphasizes disciplined, accretive transactions with attractive valuations and long-term value creation potential, backed by a flexible capital structure and experienced management team.

How has the Carolina Stone acquisition impacted Capstone (CAPS)?

The Carolina Stone acquisition has expanded Capstone's reach in the Southeast market, provided immediate revenue and EBITDA accretion, and broadened their customer base.

Who is the CEO of Capstone (NASDAQ:CAPS)?

Matthew Lipman serves as the Chief Executive Officer of Capstone Holding Corp.