Destination XL Group, Inc. Confirms Receipt of Non-Binding Proposal from Fund 1 Investments, LLC

Rhea-AI Summary

Destination XL Group (NASDAQ: DXLG), the leading integrated commerce specialty retailer of Big + Tall men's clothing and shoes, has received a non-binding acquisition proposal from Fund 1 Investments, The proposal aims to acquire all outstanding shares of the company.

The Board of Directors will review and evaluate this proposal along with other strategic alternatives. The company has engaged Guggenheim Securities, as financial advisor and Greenberg Traurig, LLP as legal advisor to assist in the evaluation process.

Positive

• Potential acquisition offer could lead to premium valuation for shareholders
• Company engaging professional financial and legal advisors for evaluation

Negative

• Proposal is non-binding, indicating uncertainty in deal completion
• No details provided about proposed acquisition price or terms

Insights

M&A Specialist

This unsolicited acquisition proposal for DXLG warrants careful attention. The involvement of Guggenheim Securities and Greenberg Traurig suggests the board is taking a serious approach to evaluating the offer. With a market cap of $121.4 million, DXLG operates in the specialized big and tall retail segment, making it an attractive acquisition target due to its niche market position and established e-commerce infrastructure. Fund 1 Investments' interest likely stems from DXLG's potential for operational improvements and market expansion. The non-binding nature of the proposal indicates this is still in early stages and shareholders should expect a thorough evaluation process. The board's fiduciary duty requires them to consider not just the immediate premium offered but also alternative strategic options that could deliver superior long-term value. Key factors in the evaluation will include the proposed purchase price, funding certainty and regulatory approval prospects.

Retail Industry Analyst

The potential acquisition of DXLG highlights the value proposition in specialized retail segments. The big and tall market represents a stable, underserved niche with competition and loyal customer base. DXLG's integrated e-commerce platform and specialized inventory management systems make it particularly valuable in today's retail landscape. The timing of this proposal is strategic, as the company has demonstrated resilience in a challenging retail environment. The acquisition interest could trigger competitive bids from other strategic buyers or private equity firms looking to expand in the specialty retail space. For the broader retail sector, this move signals continued interest in companies with strong digital capabilities and defined market niches. The outcome of this proposal could influence valuations of similar specialty retailers.

CANTON, Mass., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Destination XL Group, Inc, (NASDAQ: DXLG), the leading integrated - commerce specialty retailer of Big + Tall men’s clothing and shoes, today confirmed that it has received a non-binding proposal from Fund 1 Investments, LLC to acquire all of the outstanding shares of the Company.

The Board of Directors regularly reviews opportunities to create and enhance shareholder value and will carefully review and evaluate this proposal and other strategic alternatives together with its financial and legal advisors.

Guggenheim Securities, LLC is acting as financial advisor and Greenberg Traurig, LLP is acting as legal advisor to the Company.

About Destination XL Group, Inc.

Destination XL Group, Inc. is the leading retailer of Men’s Big + Tall apparel that provides the Big + Tall man the freedom to choose his own style. Subsidiaries of Destination XL Group, Inc. operate DXL Big + Tall retail and outlet stores and Casual Male XL retail and outlet stores throughout the United States, and an e-commerce website, DXL.COM, and mobile app, which offer a multi-channel solution similar to the DXL store experience with the most extensive selection of online products available anywhere for Big + Tall men. The Company is headquartered in Canton, Massachusetts, and its common stock is listed on the Nasdaq Global Market under the symbol "DXLG." For more information, please visit the Company's investor relations website: https://investor.dxl.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are often accompanied by words that convey projected future events or outcomes such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” or words of similar meaning or other statements concerning opinions or judgment of the Company or its management about future events, and include statements regarding the Company’s evaluation of the non-binding proposal. Such forward-looking statements are based on various assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from any projected future results, performance or achievements expressed or implied by such forward-looking statements. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, many of which are beyond the control of the Company. The Company encourages readers of forward-looking information concerning the Company to refer to its filings with the Securities and Exchange Commission, including without limitation, its Annual Report on Form 10-K filed on March 21, 2024, its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission that set forth certain risks and uncertainties that may have an impact on future results and the direction of the Company

Investor Relations Contact:

investor.relations@dxlg.com

(603) 933-0541

Public Relations Contact:

Mike Reilly / Matt Sherman

Joele Frank, Wilkinson Brimmer Katcher

DXLGmedia-jf@joelefrank.com

(212) 355-4449

FAQ

What is the status of Fund 1 Investments' proposal to acquire DXLG?

Fund 1 Investments has submitted a non-binding proposal to acquire all outstanding shares of Destination XL Group (DXLG). The proposal is currently under review by the company's Board of Directors.

Who are the advisors helping DXLG evaluate the acquisition proposal?

Guggenheim Securities, is serving as financial advisor, while Greenberg Traurig, LLP is acting as legal advisor to DXLG in evaluating the proposal.

What type of proposal has DXLG received from Fund 1 Investments?

DXLG has received a non-binding proposal from Fund 1 Investments, to acquire all of the outstanding shares of the company.

How is DXLG's Board handling the acquisition proposal?

DXLG's Board of Directors is carefully reviewing and evaluating the proposal along with other strategic alternatives, supported by their financial and legal advisors.