Capstone Holding Corp. · NASDAQ:CAPS
Capstone — Investor Presentation (February 2025)
21 slides from Capstone's investor presentation, Feb 6, 2025
Slide 1: Capstone Holding Corp. Investor Presentation
Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration Number: 333-284105 February 6, 2025 Capstone Holding Corp. Investor Presentation Building Products Consolidation Distribution Augmented by Select Vertical Integration February 2025 1
Slide 2: Legal Disclosure & Disclaimer
Legal Disclosure & Disclaimer Capstone Holding Corp. (“Capstone") is offering shares of common stock (the “Securities”) in a public offering (the “Offering”). The proceeds of the Offering, if completed, are intended primarily to be used for the repayment of a term loan and general corporate purposes
Slide 3: Free Writing Prospectus Statement
Free Writing Prospectus Statement Capstone has filed a registration statement (including a prospectus) with the SEC for the Offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the
Slide 4: Special Note Regarding Forward-Looking Statements and Industry Data
Special Note Regarding Forward-Looking Statements and Industry Data This presentation includes forward-looking statements within the meaning of Section 27A of the Act and Section 21E of the Exchange Act. Except for statements of historical fact, any information contained in this presentation may be
Slide 5: Table of Contents
Table of Contents I. Transaction & Management Overview II. Key Investment Highlights III. Industry & Strategy Overview IV. Product Overview V. Value Drivers & Customer Overview VI. Platform Overview Appendix. Company Overview 5
Slide 6: Transaction Overview
Transaction Overview Issuer: Capstone Holding Corp. Listing | Symbol: NASDAQ: CAPS (Common Stock) Offering Type: Follow-on Offering Base Offering Size: $5,000,000 at $4.00 per share Over-Allotment Option: 15.0% of base offering size 1,250,000 IPO Shares Offered: 1,437,500 with full exercise of over-
Slide 7: Experienced Management Team To Drive Growth
Experienced Management Team To Drive Growth • Founder and Managing General Partner of Brookstone Partners (the ultimate beneficial owner of the majority interest in Capstone) for over 20 years • Actively works with entrepreneurial management teams to build companies and help to execute their strateg
Slide 8: Experienced Management Team To Drive Growth
Experienced Management Team To Drive Growth • Chuck has 40+ years of financial and general management experience. • He started his career at GE and eventually became the President of GE Locomotives Indonesia. • Chuck joined Owens Corning in 1995, where as President of the Composite Solutions Busines
Slide 9: Key Investment Highlights
Key Investment Highlights Right Team Private equity sponsor with 25 years of deep building products investment experience has a significant stake and is driving strategy. Current platform company has executed acquisitions and integrations . Chuck Dana, a long-time operating partner is a direct
Slide 10: M&A Performance: Right Timing, Right Strategy
M&A Performance: Right Timing, Right Strategy M&A Results “Building products companies that make frequent and material acquisitions substantially outpace inactive companies in total shareholder returns, 9.6% vs 2.7%”, according to Bain & Co.(1) “Successful companies will pursue scope M&A to buil
Slide 11: Building Products Distribution Consolidation
Building Products Distribution Consolidation Investment Thesis: Well Timed, Attractive Opportunity Set Key differentiator: The company owns or controls five of the eight brands it sells through: • Contract • Joint Ventures • Acquiring selected manufacturers and ramping up their distribution Market
Slide 12: Business Growth Strategy
Business Growth Strategy Buy Manufacturers, Reach Further, Fortify Distribution Offer More Core Expand geography and product breadth of Identify and acquire under distributed distribution platform manufacturing company. Own/outsource manufacturing with owned brands Seamlessly integrate acqui
Slide 13: Product Overview: Owned & Controlled Product Offerings
Product Overview: Owned & Controlled Product Offerings Product Portfolio Control Key strategy is to own or control brands and products that the Company sells Five of the eight brands we sell are under the Company’s own brands or brands for which it holds exclusive distribution rights in its trad
Slide 14: New Product Driving Growth: Toro
New Product Driving Growth: Toro No Logo on all pages National brand of man-made stone Quality Product Jointly developed with a manufacturer in Mexico. Optimal quality vs. price value relationship engineered into popular SKU’s. 30 SKUs offered currently, further product development in progress
Slide 15: New Product Driving Growth: Pangaea
New Product Driving Growth: Pangaea National brand of Natural Stone Quality Product Natural Stone priced competitively against premium manufactured stone options. Each stone is tooled, trimmed, fitted with GripSet® technology. Smart Packaging Each layer is formulated to achieve optimal yield f
Slide 16: Value Driver: Service Platform
Value Driver: Service Platform Product Offering Frequent Delivery Wide range of complimentary products, Smaller orders grouped together, prices, and applications minimizing LTL Costs Differentiated brands Customers can get products twice a week with short lead time, improving service level C
Slide 17: Customer Overview
Customer Overview: No Logo on all pages Instone's wide dealer network can be grouped into three main customer types: Masonry Dealers: Focus: Brick, block, stone, and other masonry products. Customers: Contractors, builders, general contractors, architects, and retail. Landscape Dealers: Focus: H
Slide 18: Platform Profile: Instone
Platform Profile: Instone Building products distribution platform that owns or controls over 50% of the products it distributes in 31 states in the US will: Grow its distribution footprint Expand product lines Continue to drive density growth organically and through acquisition Successful tran
Slide 19: Closing Thoughts
Closing Thoughts Building Businesses, Investing in People Platform run by industry veterans that understand the business cycle and buying patterns of customers Conservative capital structure Solid cash flow generation and anticipated share price appreciation 19
Slide 20: For More Information
For More Information: Matthew Lipman Chief Executive Officer and Director +1 (212) 302-0699 matt.lipman@capstoneholding.net
Slide 21: Appendix - Company History
Appendix - Company History Building Businesses, Investing in People Brookstone Investment 2017 • CAPS had an NOL in excess of $150 million 2017 Ownership Increase 2020 • Brookstone expanded its ownership as a portion of debt was repaid with equity but did not trigger NOL constraints. Currently at ab
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