Destination XL, FullBeauty to merge, creating $1.2B inclusize sizes business
Destination XL Group Inc. and FullBeauty are combining forces in a “merger of equals.”
The parent company of DXL Big + Tall stores and Casual Male XL stores and FBB Holdings Inc. (FullBeauty), an inclusive-size online retailer for men and women, have agreed to a “merger of equals.” FullBeauty, which is a private company, operates a portfolio of both legacy and new brands that include DXL rival KingSize, Catherines, Eloquil, Roaman’s, Dia, FullBeauty, OneStopPlus, Shoes For All, Joe Browns and more.
Under the terms of the agreement, FullBeauty will merge with a newly formed subsidiary of DXL, with DXL remaining the publicly traded entity under the ticker symbol DXLG. FullBeauty shareholders are set to own 55% of the combined company while Destination XL shareholders will own 45%.
The combined company will have a customer base of 34 million households and operate nearly 300 stores. Direct-to-consumer mix will account for 73% of total sales, with bricks-and-mortar at 27% of total sales.
Jim Fogarty, current CEO of FullBeauty, will serve as CEO of the combined company and Peter Stratton, current CFO of DXL, will serve as its CFO. Harvey Kanter, president and CEO of DXL, will depart the business after the deal has closed. The headquarters will remain in Canton, Mass., with the combined company expected to maintain a significant presence in New York City, Indianapolis and El Paso, Texas.
The combined business will have annual sales of about $1.2 billion, with adjusted earnings before interest, taxes, depreciation and amortization of about $70 million (based on the performance of both businesses for the last 12 months ending October 2025). The companies anticipate $25 million in annual cost savings by 2027.
“By uniting DXL and FullBeauty we are creating a leader in a fragmented market that will define the next decade of inclusive fashion,” said Fogarty. “Together we will be a powerful engine for innovation — combining data science, digital scale, proprietary fit technology and differentiated store expertise. With our shared values and mission, incredible portfolio of brands, complementary capabilities, enhanced financial profile, proven record of successful brand integrations and the scale of a larger public company, we expect to deliver sustainable growth, stronger margins and long-term shareholder value — while expanding choice for customers in an apparel category that has historically lacked options.”
In a statement, Kantor said that DXL shareholders will benefit from the upside potential “of our large, combined company as we capture growth opportunities, leverage our fit expertise, execute on cost synergies and use our enhanced financial position to invest in our business.”
“Together with FullBeauty, we will be better able to serve our customers across the plus-size and big and tall apparel market, providing them more brands, more styles and more options whether they shop in stores or online through our powerful omnichannel platform,” he continued.
The combined company’s board will be made up of nine directors. Four will be appointed by FullBeauty, four by DXL and one independent director to be mutually agreed upon by the go-forward directors prior to closing.
The merger is expected to close in the first half of fiscal year 2026.
