Capstone completes Canadian Stone Industries acquisition

Capstone Holding Corp. (NASDAQ: CAPS) completed its acquisition of Canadian Stone Industries on December 1, according to a company statement. The transaction adds $15 million in annual revenue to the building products distributor's operations.

The purchase price was set at net asset value, with approximately 50% of consideration structured as notes or contingent consideration. Canadian Stone Industries operates multiple locations as a distributor in the building products sector.

Capstone stated the acquisition expands its North American geographic footprint and adds to its brand portfolio. The company said the transaction is expected to be immediately accretive to revenue and EBITDA.

"We continue to execute on our strategy of acquiring immediately accretive, high-quality businesses at disciplined valuations," said Matthew Lipman, Chief Executive Officer of Capstone Holding Corp.

The acquisition represents part of $26 million in acquired revenue that Capstone added during the second half of 2025. The company has set a target of reaching $100 million in run-rate revenue by early 2026.

Capstone operates through its Instone subsidiary across 32 U.S. states, offering stone veneer, hardscape materials, and modular masonry systems. Previous acquisitions during 2025 included Carolina Stone, HHT's stone business, Heller's Stone, and Northeast Masonry.

The company expects to complete three to four additional acquisitions in 2026, according to the statement. Capstone reported record growth in revenue, EBITDA, and gross margins in its second and third quarter results for 2025.

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