Arizona Tribune - Capstone Signs LOI to Acquire Southeast Stone Co.

NEW YORK CITY, NEW YORK / ACCESS Newswire / July 1, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution company, today announced it has signed a non-binding letter of intent ("LOI") to acquire a Southeast-based distributor of thin veneer stone and hardscape materials.

The planned acquisition marks Capstone's entry into the Southeastern U.S. market - a key region in the company's expansion strategy. The target business is known for its strong relationships with residential and commercial builders, and contractors.

"This move extends our national footprint into one of the fastest-growing construction markets in the country," said Matt Lipman, CEO of Capstone Holding Corp. "We're excited by the opportunity to partner with a proven operator and expand our wholesale stone product offerings in this high-growth region. With our platform, we see clear opportunities to reduce freight costs, improve delivery times, and better serve an expanding customer base in the South."

The LOI is non-binding and subject to the negotiation of a definitive stock purchase agreement and other customary conditions. If completed, the acquisition would represent another step in Capstone's strategy to scale through disciplined M&A, targeting strong local operators in growing markets. The purchase price is in line with the formula presented to investors in the Company's investment thesis for tuck-in deals - 4x to 6x EBITDA with 20% to 45% non-cash consideration.

Capstone continues to pursue acquisitions at attractive valuations while reaffirming its full-year targets of a $100 million revenue run rate and $10 million in adjusted EBITDA.

About Capstone Holding Corp.

Capstone Holding Corp. (NASDAQ:CAPS) is a diversified platform of building products businesses focused on distribution, brand ownership, and acquisition. Capstone's Instone subsidiary currently serves 31 U.S. states, with proprietary offerings including stone veneer, landscape stone, and modular masonry systems. Capstone's strategy blends organic growth with disciplined, accretive M&A, supported by a shareholder-aligned capital structure. Learn more at www.capstoneholdingcorp.com.

Investor Contact:

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Forward-Looking Statements

This press release contains certain "forward-looking statements". These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events. Investors can find many (but not all) of these statements by the use of words such as "may," "will," "expect," "anticipate," "estimate," "intend," "plan," "believe," or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent events or circumstances, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure investors that such expectations will turn out to be correct, and the Company cautions that actual results may differ materially from anticipated results. Additional factors are discussed in the Company's public filings with the Securities and Exchange Commission, available for review at www.sec.gov.

SOURCE: Capstone Holding Corp.

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W.Moreno--AT