Capstone Holding Corp. (NASDAQ: CAPS) announced it received distribution rights for Eldorado Stone, a manufactured stone veneer brand from Westlake Royal Building Products. The company projects the addition will generate $5 million in annualized revenue by Q3 2027.

The distribution agreement expands Capstone's relationship with Westlake, as the company already serves as a distributor for Westlake's Cultured Stone brand. Eldorado Stone will be sold through Capstone's existing distribution network without additional infrastructure investment.

Capstone expects to capture revenue from existing customers who currently purchase Eldorado products from other distributors. The brand's specification by architects and designers may also generate new customer accounts, according to the company.

"The addition of Eldorado Stone is a significant organic growth driver for our business," said Matthew Lipman, Chief Executive Officer of Capstone. "This is $5 million in revenue that requires no acquisition cost and flows through a cost structure that is already in place."

The company stated that Eldorado Stone revenue will utilize existing distribution channels, increasing revenue per customer and delivery route. Capstone indicated the incremental revenue is expected to convert to EBITDA at higher margins than the company's average.

Eldorado Stone has operated for more than 50 years and is manufactured by Westlake Royal Building Products, part of Westlake Corporation (NYSE: WLK). The brand produces manufactured stone veneer for residential and commercial applications.

Capstone operates a building products distribution platform across 38 U.S. states and Canada, focusing on stone veneer, hardscape materials, and modular masonry systems.