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NEW YORK CITY - Capstone Holding Corp. (NASDAQ:CAPS), a building products distribution platform with annual revenues of $43.38 million and a market capitalization of approximately $7 million, announced Monday it is in active discussions with multiple acquisition targets following its recent purchase of Carolina Stone.
The company reported it is maintaining a disciplined approach to acquisitions, focusing on transactions that provide immediate financial benefits and align with its strategic goals. The Carolina Stone acquisition, which added $11 million in revenue, has been fully integrated and expanded Capstone’s presence in Southeast markets. According to InvestingPro data, the company maintains a gross profit margin of 21.94%, though it faces profitability challenges in the current market environment.
"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, according to the company’s press release.
Capstone, which operates primarily through its Instone subsidiary, currently serves 31 U.S. states with stone veneer, hardscape materials, and modular masonry systems. The company noted that more than half of its current sales come from owned brands, which it credits with supporting margin expansion.
The building products distributor indicated it has the financial flexibility to continue pursuing acquisitions that meet its criteria for quality and strategic fit. Capstone’s business model combines acquisitions with operational improvements and brand development.
Capstone Holding Corp. trades on the Nasdaq under the ticker CAPS. The announcement was made in a company press release.
In other recent news, Capstone Holding Corp. has successfully completed its acquisition of Carolina Stone Products ahead of schedule. The deal, finalized on August 22, 2025, involved a transaction valued between $3.9 million and $4.7 million, equating to approximately 4.7 to 5.2 times Carolina Stone’s EBITDA. Carolina Stone Products, based in North Carolina, generates around $11 million in annual revenue. In related developments, Capstone has amended the terms of its senior secured convertible note, reducing the conversion price from $1.72 to $1.00 per share. This adjustment was made to facilitate the company’s financial strategy. Additionally, Capstone has secured a $10 million convertible note facility, with an initial $3 million draw, to support its acquisition plans. The company intends to use these funds primarily for acquiring a Southeast U.S.-based distributor of thin veneer stone and hardscape materials. These strategic moves highlight Capstone’s ongoing expansion efforts in the building products sector.
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