Capstone Holding Corp. (NASDAQ: CAPS), a national building products distribution platform, has closed its acquisition of Carolina Stone Products ahead of schedule, adding approximately $11 million in annual revenue and strengthening its presence in the fast-growing Southeast construction market.
The transaction, which closed on August 22, 2025, was completed within Capstone’s disciplined 4–6× EBITDA target range. Carolina Stone generated trailing twelve-month EBITDA of roughly $0.75 million and is expected to deliver about $1 million in 2026. The purchase price of $3.9 to $4.7 million makes the deal immediately accretive to both revenue and EBITDA.
“With Friday’s closing, we’re delivering exactly what we said we would: immediately accretive acquisitions at disciplined valuations,” said Matthew Lipman, CEO. “Carolina Stone strengthens our brand portfolio, gives us a foothold in one of the nation’s fastest-growing construction markets, and positions us for a ~$100 million revenue run-rate entering 2026.”
Carolina Stone EVP Stuart Powell welcomed the partnership, stating, “We’re excited to officially join Capstone. The expanded reach and access to Instone’s distribution platform will allow us to better serve our customers and accelerate growth.”
The deal underscores Capstone’s broader M&A strategy, which targets accretive acquisitions in the 4–6× EBITDA range with 20–45% non-cash consideration. The company is actively reviewing additional opportunities and expects to close at least one more acquisition before year-end.
Carolina Stone joins a growing roster of recent acquisitions, including HHT’s stone business, Heller’s Stone, and Northeast Masonry,\=that have expanded Capstone’s footprint, lowered costs, and boosted margins. In the second quarter, Capstone reported gross margin improvement to 24.4% from 21.4% a year earlier, reflecting the benefits of its strategy to pair disciplined M&A with organic growth.
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