Capstone Partners has served as exclusive financial advisor to Desert Stream, Inc.—a Nephi, Utah-based contract development and manufacturing organization (CDMO) in the vitamins, minerals, and supplements (VMS) sector—in connection with its sale to an undisclosed strategic acquirer.
Founded in 1998 by brothers Stony and Jason Brooks, Desert Stream has grown over more than 25 years into a highly regarded manufacturer offering end-to-end solutions including product development, formulation and flavoring, full turnkey manufacturing, quality assurance, and packaging. They are recognized as a standout in the sector for its exceptional flavoring capabilities and powder production expertise. In July 2025, Desert Stream moved into a newly constructed 60,000-square-foot, FDA-registered facility that provides significant capacity for future growth. For more information on Desert Stream, visit here.
Selling the company we spent 25+ years building was deeply personal. Capstone understood that from day one. They positioned Desert Stream the right way, found us a partner who valued what we’d created, and led us through a smooth process to a great result. A true partnership from start to finish.
Lisa Tolliver, Managing Director at Capstone Partners said, “It was a privilege to advise Stony and Jason on this important milestone. Over more than 25 years, they built a highly respected VMS contract manufacturer known for exceptional flavoring capabilities, quality, and customer service. We employed a targeted process to identify a synergistic partner who shares their commitment to excellence and is well positioned to support the Company’s next phase of growth. We’re thrilled to have helped the founders achieve an outcome that honors the business they built.”
The transaction reflects accelerating demand for specialized CDMOs in the VMS sector. As brands increasingly outsource formulation, flavoring, manufacturing, and packaging to accelerate speed to market and expand into innovative formats like powders, sticks, and sachets, contract manufacturing has emerged as one of the fastest-growing areas of VMS M&A activity — attracting strong interest from both strategic acquirers and private equity platforms seeking scalable, differentiated manufacturing capabilities.
The investment banking professionals on Capstone Partners’ dedicated Consumer Team work with leading middle market companies operating in the Vitamins & Supplements market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Consumer Banking Team, contact us here.
