DXL has reconsidered its merger with FullBeauty Brands, urging shareholders to vote against the issuance of shares needed to close the deal. The board cites FullBeauty’s debt burden and potential dilution amid a slowing consumer environment and higher financing costs. The outcome leaves the transaction in limbo and could push DXL to pursue alternative strategic options.
Destination XL and FullBeauty will merge, creating a 'merger of equals'. FullBeauty shareholders will hold 55% of the combined entity. Pro forma revenue expected to reach $1.2 billion by October 2025. Leadership transition will see Jim Fogarty lead the combined company. Expected annual cost savings of $25 million by 2027.