Capstone Holding Signs Non-Binding LOI To Acquire Multi-Location Stone Distribution Business With $15M In Annual Revenue; Capstone Reaffirms Goal Of $100M In Run-Rate Revenue In Q1 2026

Expected close in 45 days; deal adds premium brands, expands footprint, and drives immediate revenue and EBITDA growth

NEW YORK CITY, NY, IL / ACCESS Newswire / October 7, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced it has signed a non-binding letter of intent ("LOI") to acquire a multi-location stone distribution business with $15 million in annual revenue.

The planned acquisition is expected to be immediately accretive to both revenue and EBITDA, further accelerating progress toward Capstone's $100 million run-rate revenue target for 2026.

Key Highlights:

Transaction: LOI signed for the acquisition of a stone distributor (with ~$15M annual revenue), expanding Capstone's geographic presence.

Financial Impact: Adds significant revenue ($15M) and is expected to boost EBITDA immediately upon closing.

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

Strategic Fit: Broadens Capstone's footprint and premium brand portfolio, reinforcing scale and market leadership.

Growth Target: Moves the company closer to its goal of a $100M revenue run-rate (targeted by early 2026).

Closing Timeline: Subject to definitive agreement and customary conditions; targeting closing within 45 days.

The LOI is non-binding and subject to the negotiation of a definitive stock purchase agreement and other customary conditions.

Growing the Platform with Discipline

If completed, the acquisition is expected to be at about Net Asset Value with about 50% in notes or contingent consideration. This disciplined approach to acquiring companies at attractive multiples supports sustainable long-term growth and value creation for shareholders.

Capstone will continue pursuing acquisitions at attractive valuations. The company reaffirms its goal of $100 million in run-rate revenue in Q1 2026.