Destination XL Group, Inc., the parent of DXL Big + Tall and Casual Male X, has agreed to merge with FullBeauty, which owns several plus-size retailers and e-commerce sites, to create a plus-size retail powerhouse.

FullBeauty’s businesses include OneStopPlus, Catherines, WomanWithin, Jessica London, Roaman’s, SwimsuitsForAll, Ellos, Active For All, Shoes For All, Intimates For All, KingSize, Brylane Home, June & Vie, Eloquii, CUUP, Dia Shop, Dia & Co, Avenue, Joe Browns, FullBeauty, and FullBeauty Outlet.

The combined business had annual sales of about $1.2 billion for the last twelve months ending October 2025. The combined company will reflect a direct-to-consumer mix of 73 percent of total sales, with brick-and-mortar at 27 percent.

Assuming no pro forma adjustments, adjusted EBITDA was roughly $45 million for the last twelve months ending October 2025. Including $25 million in expected annual run-rate cost synergies, the combined company would have generated approximately $70 million of LTM adjusted EBITDA.

Under the terms of the merger agreement, FullBeauty will merge with a newly formed DXL subsidiary, with DXL remaining the publicly traded entity under the ticker symbol DXLG. In addition, at closing, certain of FullBeauty’s equity and debt holders will complete a committed subscription of $92 million, through the sale of common stock in exchange for a combination of new equity and outstanding debt equitization, resulting in a term loan outstanding at closing of about $172 million, with a maturity of August 2029, the companies said.

FullBeauty and DXL shareholders will own 55 percent and 45 percent of the combined company, respectively.

Following the merger’s closing, FullBeauty CEO Jim Fogarty will serve as the combined company’s CEO. Peter Stratton, the current CFO of DXL, will serve as chief financial officer. Headquarters will remain in Canton, MA, and the combined company is expected to maintain a significant presence in New York City, Indianapolis and El Paso.

“We are excited about what this transaction means for our associates, customers and shareholders,” said Harvey Kanter, president and CEO of DXL. “Together with FullBeauty, we will be better able to serve our customers across the plus-size and Big + Tall apparel market, providing them more brands, more styles and more options whether they shop in stores or online through our powerful omni-channel platform. Our 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. We look forward to working with FullBeauty and joining our teams to deliver on the promise of this combination.”

“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.”

Lionel Conacher, chairman of the current Board of DXL, said, “Following a comprehensive review of this transaction, the Board determined that this combination has the potential to create significant value for and is the best path forward for DXL shareholders. We look forward to working together to guide the combined company to even greater success as one organization.”

Steve Tesoriere, portfolio manager of funds managed by Oaktree Capital Management, L.P. and director of FullBeauty added, “As the largest individual owner of FullBeauty, we look forward to participating in the significant upside potential this transaction creates. Pro forma for cost synergies, we expect the combined company to generate solid free cash flow and generate very attractive shareholder returns. We are excited for the opportunity for value creation ahead as FullBeauty and DXL join forces to create a leader in inclusive apparel to pursue the vast and growing market opportunity.”

Image courtesy DXL