Destination XL Group And FullBeauty To Create $1.2 Billion Merger

Core Viewpoint - Destination XL Group and FullBeauty are merging to create a larger entity in the apparel market, focusing on extended sizes and inclusive fashion, with FullBeauty shareholders owning 55% of the new group [3][7]. Company Overview - FullBeauty operates a range of plus-size and inclusive apparel brands, including KingSize, Catherines, Eloquii, Roaman's, and Dia, while Destination XL is known for its DXL Big + Tall and Casual Male XL store chains [4][10]. - The combined entity will serve approximately 34 million customer households and operate nearly 300 stores, with direct-to-consumer sales making up about 75% of total revenue [5]. Financial Projections - On a pro forma basis, the merged group is expected to generate around $1.2 billion in annual revenue and an adjusted EBITDA of approximately $70 million by October 2025 [6]. - Management anticipates annual cost savings of about $25 million by 2027 [6]. Leadership and Structure - Jim Fogarty, the current CEO of FullBeauty, will lead the combined business, while Peter Stratton from Destination XL will serve as CFO [5]. - The board will consist of nine directors, evenly split between appointees from both companies, plus one independent director [9]. Market Positioning - The merger aims to create a scaled player in a fragmented apparel market, leveraging digital capabilities, data analytics, and fit expertise [7][8]. - The combined company is positioned to drive innovation in inclusive fashion, enhancing customer choice in a historically underserved category [9].