Capstone Closes Canadian Stone Industries Acquisition, Adding $15M Revenue and Expanding North American Footprint

Rhea-AI Summary

Capstone Holding Corp (NASDAQ:CAPS) closed the acquisition of Canadian Stone Industries on Dec 1, 2025, adding approximately $15 million of trailing annual revenue and immediate accretion to revenue and EBITDA. The deal was structured at Net Asset Value with roughly 50% of consideration in notes or contingent consideration. Capstone said the acquisition expands its North American footprint, strengthens its premium brand portfolio, and accelerates progress toward a $100 million run-rate revenue target for early 2026. In H2 2025 Capstone added $26 million of acquired revenue and now operates across a 32-state footprint; the company expects to close 3–4 additional acquisitions in 2026.

Positive

• Adds $15M trailing annual revenue
• Contributes to $26M acquired revenue in H2 2025
• Supports $100M run-rate target for early 2026

Negative

• Approximately 50% of consideration issued as notes or contingent consideration

News Market Reaction

-3.03% 3.2x vol

12 alerts

-3.03% News Effect

-22.0% Trough in 5 hr 34 min

-$224K Valuation Impact

$7M Market Cap

3.2x Rel. Volume

On the day this news was published, CAPS declined 3.03%, reflecting a moderate negative market reaction. Argus tracked a trough of -22.0% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $224K from the company's valuation, bringing the market cap to $7M at that time. Trading volume was very high at 3.2x the daily average, suggesting heavy selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

CSI annual revenue: $15 million Run-rate target: $100M Acquired revenue H2 2025: $26 million +5 more

8 metrics

CSI annual revenue $15 million Trailing revenue for Canadian Stone Industries acquisition

Run-rate target $100M Revenue run-rate target for early 2026

Acquired revenue H2 2025 $26 million Total acquired revenue added in second half of 2025

Non-cash consideration ≈50% of consideration Notes or contingent consideration in CSI purchase structure

Closing date December 1, 2025 Date Capstone closed CSI acquisition

Current share price $0.84 Price before this news, vs 52-week high of $16.18

52-week low $0.725 Low end of 52-week trading range pre-announcement

Planned 2026 deals 3–4 acquisitions Management expectation for additional acquisitions in 2026

Market Reality Check

Price: $0.6501 Vol: Volume 163,118 is below t...

low vol

$0.6501 Last Close

Volume Volume 163,118 is below the 20-day average of 509,523, suggesting a relatively subdued response before this news. low

Technical Shares at $0.84 are trading below the $1.63 200-day moving average and 94.81% below the 52-week high.

Peers on Argus

While CAPS showed a -6.75% move, peers were mixed: RETO up 18.87%, LOMA up 2.24%...

1 Up

While CAPS showed a -6.75% move, peers were mixed: RETO up 18.87%, LOMA up 2.24%, CAPT down 3.11%, others modestly negative. This points to stock-specific dynamics rather than a sector-wide pattern.

Common Catalyst Another peer, CAPT, also had an acquisition-related headline, but overall moves do not indicate a broad building-materials consolidation trade.

Historical Context

5 past events · Latest: Dec 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	Integration update	Positive	+4.0%	Reported CSI integration completion, reaffirmed $100M run-rate and platform benefits.
Dec 02	Acquisition closing	Positive	-3.0%	Closed CSI deal, added ~$15M revenue and immediate accretion to EBITDA.
Nov 24	Industry outlook	Positive	+8.3%	Highlighted research showing multi-year remodeling demand and reaffirmed $100M target.
Nov 19	Investor update	Positive	-1.6%	Released Q3 investor deck with record performance and acquisition momentum.
Nov 17	Q3 earnings & M&A	Positive	+6.9%	Reported record Q3 results and detailed new acquisitions toward $100M run-rate.

Pattern Detected

Positive strategic and acquisition updates have usually led to modest positive moves, but there are notable instances where upbeat news coincided with short-term pullbacks.

Recent Company History

Over the last few months, Capstone has consistently highlighted acquisition-driven growth and its path to a $100M revenue run-rate. Q3 releases showed pro forma YTD revenue of $41.2M with strong EBITDA and gross profit growth, plus $26M of annualized revenue from recent deals. Subsequent updates reiterated industry research supporting demand and reaffirmed the $100M target. The CSI acquisition closing on Dec 1, 2025 slots into this strategy, adding roughly $15M of revenue and reinforcing its North American footprint.

Market Pulse Summary

This announcement details Capstone’s closing of the Canadian Stone Industries acquisition, adding ab...

Analysis

This announcement details Capstone’s closing of the Canadian Stone Industries acquisition, adding about $15M of annual revenue and described as immediately accretive to revenue and EBITDA. It reinforces management’s goal of reaching a $100M run-rate by early 2026 and notes $26M in acquired revenue in the second half of 2025. In context of recent filings outlining higher costs and debt, investors may focus on integration progress, margin trends, and any updates on additional 2026 acquisitions.

Key Terms

ebitda, net asset value, run-rate

3 terms

ebitda financial

"adds immediate accretion to revenue and EBITDA.The acquisition accelerates"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

net asset value financial

"Valuation & Structure: Purchase price at Net Asset Value, with roughly 50%"

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

run-rate financial

"advances progress toward its $100M run-rate target for early 2026.NEW"

Run-rate is an estimate of a company’s future annual performance created by multiplying recent results (such as a month or quarter) to project a full year, like using current speed to guess how far you’ll travel in a year. Investors use it as a quick way to gauge growth, size and momentum and to compare firms, but it can be misleading if recent results include one-time events or seasonal swings, so it’s a rough, not definitive, forecast.

AI-generated analysis. Not financial advice.

The transaction strengthens Capstone's platform and advances progress toward its $100M run-rate target for early 2026.

NEW YORK CITY, NEW YORK / ACCESS Newswire / December 2, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced the closing of its acquisition of Canadian Stone Industries (CSI), a multi-location distributor with $15 million in annual revenue. The transaction expands Capstone's North American footprint, strengthens its premium brand portfolio, and adds immediate accretion to revenue and EBITDA.

The acquisition accelerates Capstone's progress toward its $100 million run-rate revenue target for early 2026. In the second half of 2025, Capstone has added $26 million in acquired revenue and continues to engage with a robust 2026 pipeline of high-quality targets.

Transaction Highlights:

• Closing Date: December 1, 2025

• Target: Canadian Stone Industries

• Financials (Trailing): Revenue ≈ $15 million

• Valuation & Structure: Purchase price at Net Asset Value, with roughly 50% of consideration in notes or contingent consideration.

• Financial Impact: Adds $15M revenue and is expected to be immediately accretive to revenue and EBITDA at close.

• Strategic Fit: Strengthens Capstone's geographic footprint, premium brand portfolio, and customer base, reinforcing scale advantages across North America.

"We continue to execute on our strategy of acquiring immediately accretive, high-quality businesses at disciplined valuations," said Matthew Lipman, Chief Executive Officer of Capstone Holding Corp. "CSI strengthens our brand portfolio and customer base at a moment when demand is poised to accelerate across our sector. We enter 2026 with record year-over-year growth in revenue, gross profit, and EBITDA, and our $100 million run-rate firmly on track."

Jeff Leech, President of Canadian Stone Industries, added: "We're excited to join Capstone. Access to its distribution platform will enable us to reach more customers and accelerate our growth. The integration process with their team is already underway."

Capstone Delivers Disciplined Platform Growth

The acquisition continues a series of accretive transactions, including Carolina Stone, HHT's stone business, Heller's Stone, and Northeast Masonry. Each has expanded Capstone's footprint, lowered operating costs, and improved service levels.

This approach aligns with industry research from Bain & Company showing that value in building products consolidates around scaled, multi-market operators.¹ With a 32-state footprint and broad category coverage, Capstone is uniquely positioned to capture the next demand cycle.

The benefits of this strategy are already reflected in Capstone's Q2 and Q3 results, where the company delivered record growth in revenue, EBITDA, and gross margins.

Capstone expects to close three to four additional acquisitions in 2026. This disciplined M&A strategy, paired with robust organic growth, continues to drive long-term value for shareholders. The Company also reaffirms its $100 million run-rate revenue target for early 2026.

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 32 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.

¹https://www.bain.com/insights/building-products-m-and-a-report-2024/

SOURCE: Capstone Holding Corp.

View the original press release on ACCESS Newswire

FAQ

What did Capstone (CAPS) acquire on December 1, 2025?

Capstone acquired Canadian Stone Industries, a multi-location distributor with approximately $15M in annual revenue.

How does the CSI acquisition affect Capstone's 2026 run-rate target?

Management says the acquisition accelerates progress toward a $100M run-rate revenue target for early 2026.

What was the deal structure for Capstone's purchase of CSI (CAPS)?

The purchase was at Net Asset Value, with roughly 50% of consideration issued as notes or contingent consideration.

How much acquired revenue has Capstone added in the second half of 2025?

Capstone added about $26M in acquired revenue in the second half of 2025.

Will the CSI deal be immediately accretive to Capstone (CAPS)?

Capstone expects the acquisition to be immediately accretive to revenue and EBITDA at close.

How many additional acquisitions does Capstone expect in 2026?

Capstone expects to close three to four additional acquisitions in 2026.