Destination XL Group And FullBeauty To Create $1.2 Billion Merger
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BusinessRetailDestination XL Group And FullBeauty To Create $1.2 Billion MergerByMark Faithfull,Contributor.Forbes contributors publish independent expert analyses and insights. Mark Faithfull is London-based and covers retail and real estate Follow AuthorDec 15, 2025, 07:26am ESTDec 15, 2025, 07:27am ESTSinger Meghan Trainor and Miss USA Nia Sanchez at the FullBeauty brands launch event in New York in 2015. (Photo by Noam Galai/WireImage)WireImageDestination XL Group and FullBeauty have agreed to combine in what the companies described as a “merger of equals”, bringing together a publicly listed bricks-and-mortar retailer with a large private online platform focused on extended sizes.Under the deal, FullBeauty will be folded into a newly created subsidiary of Destination XL, which will remain the listed entity under the ticker DXLG. Shareholders of FullBeauty will own 55% of the enlarged group, with existing Destination XL investors holding the remaining 45%.FullBeauty operates a portfolio of plus-size and inclusive apparel brands across men’s and womenswear, including KingSize, Catherines, Eloquii, Roaman’s and Dia, alongside its flagship FullBeauty platform. Destination XL is the parent of the DXL Big + Tall and Casual Male XL store chains.Together, the companies say they will serve roughly 34 million customer households and operate close to 300 stores, with direct-to-consumer sales accounting for nearly three-quarters of group revenue.Leadership of the combined business will pass to Jim Fogarty, the current chief executive of FullBeauty, while Destination XL’s chief financial officer, Peter Stratton, will take on the same role at the enlarged group.MORE FOR YOUHarvey Kanter, current president and chief executive of Destination XL, is expected to leave once the transaction has completed. The headquarters will remain in Canton, Massachusetts, with continued operations in New York City, Indianapolis and El Paso, Texas.On a pro forma basis, the group would generate about $1.2 billion in annual revenue, based on results for the 12 months to October 2025, with adjusted EBITDA of roughly $70 million. Management expects annual cost savings of about $25 million by 2027.FullBeauty Takes Lead in MergerFogarty said the combination would create a scaled player in a highly fragmented segment of the apparel market, bringing together digital capabilities, data analytics and fit expertise across online and physical channels. Meantime, Kanter said that Destination XL shareholders would gain exposure to a larger platform with greater financial flexibility and opportunities to invest for growth while realising operational synergies.“By uniting DXL and FullBeauty we are creating a leader in a fragmented market that will define the next decade of inclusive fashion. Together we will be a powerful engine for innovation — combining data science, digital scale, proprietary fit technology and differentiated store expertise,” said Fogarty.“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.”FullBeauty And Destination Expand Plus-Size The board of the combined company will consist of nine directors, split evenly between appointees from each business, with a ninth independent director to be agreed before closing. The transaction is expected to complete in the first half of fiscal 2026.Destination XL Group Inc. is a leading retailer of larger-sized men’s apparel and includes retail and outlet stores and its common stock is currently listed on the Nasdaq.FullBeauty Brands, Inc. provides extended sizes and inclusive fashions for plus-size women and big and tall men.Beginning in 1901, the company’s portfolio includes what it says was the world’s first and largest online shopping destination for plus-size women, with multiple subbrands collectively offering more than 100 individual brands.Editorial StandardsReprints & PermissionsLOADING VIDEO PLAYER...FORBES’ FEATURED Video