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Destination XL to Merge With FullBeauty in All-Stock Deal to Form $1.2 Billion Inclusive-Size Retailer

The transaction keeps DXLG as the public company with FullBeauty investors poised to own a majority stake.

Overview

  • FullBeauty will merge into a new DXL subsidiary, with DXL remaining publicly traded under the DXLG ticker.
  • FullBeauty shareholders are set to own 55% of the combined company, while DXL shareholders will hold 45%.
  • Jim Fogarty will become CEO and DXL’s Peter Stratton will serve as CFO, with headquarters in Canton and significant operations in New York City, Indianapolis and El Paso.
  • The companies cite roughly $1.2 billion in annual sales, about $70 million in adjusted EBITDA, a DTC reach of 34 million households and 296 stores, with a revenue mix of 54% women and 46% men.
  • A $92 million committed subscription from certain FullBeauty holders will support a term loan of about $172 million due August 2029, and management targets $25 million in annual cost synergies by 2027 with closing expected in the first half of fiscal 2026.