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

Insights

M&A Strategist

Capstone closed an accretive acquisition adding immediate revenue and accelerating its path to a stated $100M run-rate.

Capstone acquired Canadian Stone Industries (CSI) on December 1, 2025, adding trailing revenue of $15 million. The purchase price at net asset value with roughly 50% of consideration in notes or contingent consideration indicates a financing mix that preserves cash flexibility while transferring downside risk to contingent instruments.

The deal directly increases scale and broadens the geographic and brand footprint inside a stated 32-state platform, which supports the company’s consolidation strategy. Key dependencies and risks include successful integration of CSI operations and realization of claimed cost or service synergies; both are necessary for the acquisition to remain accretive. Monitor integration milestones, the contingent consideration structure, and announced additional acquisitions in 2026 over the next 6–12 months for confirmation the run-rate goal remains credible.

Financial Analyst

The acquisition adds immediate revenue and EBITDA accretion and advances the company’s stated run-rate target for early 2026.

The transaction contributes $15 million of trailing revenue and is described as immediately accretive to revenue and EBITDA at close. Capstone reports $26 million of acquired revenue in H2 2025 and reaffirms a early 2026 run-rate target of $100 million, creating a clear arithmetic path toward that milestone if reported accretion holds.

Primary financial items to watch are realized EBITDA improvement versus stated accretion, the cash versus contingent split of purchase consideration (roughly 50% notes/contingent), and the impact of three to four planned 2026 deals on consolidated margins; review quarterly financials and any disclosures on contingent liability recognition over the next 1–4 quarters.

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.