Capstone will acquire a stone distribution worth 15 million dollars.

New York City, New York / Capstone Holding Corp. (NASDAQ:CAPS) announced on November 10, 2025, that it is on track to close a multi-location stone distributor with 15 million dollars in annual revenue before December 15. This acquisition is expected to significantly increase Capstone's market share.

The first phase of this deal was announced in October, and it is expected to provide immediate contributions to both revenue and EBITDA, accelerating the company's growth trajectory. Additionally, this acquisition represents a significant step towards the 100 million dollars revenue targets set for 2026.

Key Points:

• Transaction Target: The acquisition is expected to close in early December following a brief exclusivity extension provided by the seller.
• Strategic Fit: Adding a multi-location distributor will expand Capstone's market share and premium brand portfolio.
• Market Winds: Recent industry research predicts a 4.1% Compound Annual Growth Rate (CAGR) in stone product demand over the next five years.
• Accelerated Growth Path: Positions the company to reach its 100 million dollars revenue target by the beginning of 2026.

Capstone Holding Corp. CEO Matt Lipman stated, "We are very excited about approaching the conclusion of this deal. This is another example of how we can add revenue and EBITDA to the platform with discipline and strong strategic fit," he said. "We expect to deliver record revenues and gross margins in 2025, which will create stronger momentum heading into 2026."

This acquisition coincides with rising demand for stone products and complements Capstone's previously completed acquisitions of HHT's Stone Operations, Heller's Stone, and Carolina Stone. With a scaled asset in one of the fastest-growing categories in the construction industry, Capstone is well-positioned to capture further growth in the coming quarters.

Capstone remains committed to its targeted 100 million dollars revenue goal for 2026. The company also reported record gross margin expansion in the second quarter of 2025, increasing from 24.4% to 21.4%.

Capstone Holding Corp. (NASDAQ:CAPS) is a platform of various construction products businesses focused on distribution, brand ownership, and acquisitions. Through its subsidiary Instone, Capstone serves 31 states in the U.S., offering specialty stone cladding, hardscape materials, and modular wall systems.