Deal adds premium brands and North Carolina footprint; pipeline remains active at 4-6× EBITDA valuation range with 20-45% non-cash consideration

NEW YORK, NY / ACCESS Newswire / August 18, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced it has signed a definitive agreement to acquire Carolina Stone Products, with closing targeted by August 22, 2025, subject to customary conditions. Additional details are included in the Company's Form 8-K filed today.

Transaction Highlights

Target: Carolina Stone Products (North Carolina)

Closing: Targeted by August 22, 2025

Financials (trailing):Revenue ≈ $11 million; LTM EBITDA ≈ $0.75 million/ 2026 ≈ 1.001 million

Purchase price / multiple:$3.9-$4.7 million (~4.7×-5.2× EBITDA)

Accretion: Immediately accretive to revenue and EBITDA at close

Strategic fit: Expands Southeast footprint; adds premium brands; supports margin expansion

Additional Acquisitions - Capstone expects to close at least one additional acquisition by year-end 2025. Multiple targets are under review at 4-6× EBITDA valuations, with 20-45% non-cash consideration, positioning Capstone to make a third acquisition and enter 2026 at a ~$100 million revenue run-rate.

The company's disciplined approach to M&A has fueled significant platform growth. Previous acquisitions - including HHT's stone business, Heller's Stone, and Northeast Masonry - have expanded Capstone's footprint, lowered costs, strengthened supply chains, and elevated customer service.

In addition to pipeline progress, Capstone last week reported that Q2 gross margins rose to 24.4% from 21.4% a year earlier, driven by increased sales of owned brands and disciplined cost management. These results underscore the company's execution of its long-term growth strategy: pairing organic expansion with well-timed acquisitions.