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Destination XL to Merge With FullBeauty in All-Stock Deal, Creating a $1.2 Billion Inclusive-Sizing Retailer

Shareholder approval remains pending ahead of a targeted mid-2026 closing.

Overview

  • FullBeauty holders would own 55 percent of the combined company, with DXL shareholders holding 45 percent.
  • FullBeauty CEO Jim Fogarty will lead the merged company, DXL CEO Harvey Kanter will depart after closing, and DXL CFO Peter Stratton will become CFO.
  • The structure includes a $92 million committed subscription from certain FullBeauty investors and a term loan expected at closing of about $172 million maturing in August 2029.
  • The businesses report roughly $1.2 billion in trailing 12-month sales, about $70 million in adjusted EBITDA, direct reach to 34 million households, and 296 stores.
  • Management projects $25 million in annual run-rate cost synergies by 2027, and major DXL holder Fund 1 Investments and board members, together about 19 percent of voting shares, have signaled support.