Destination XL Rejects Zodiac Partners' Buyout Offer

Destination XL Group, Inc. (DXL) announced on June 10, 2024, that its Board of Directors has unanimously rejected a second unsolicited, non-binding proposal from Zodiac Partners, LLC to acquire all of the outstanding shares of the company. Zodiac Partners had previously submitted an offer on May 13, 2024, which was also rejected by the DXL Board.

The latest proposal from Zodiac Partners, received on June 7, 2024, offered to acquire DXL for $0.84 per share in cash. This represented an increase from their initial offer of $0.77 per share. However, the DXL Board determined that the revised offer, like the previous one, significantly undervalues the company and is not in the best interests of its shareholders. The Board cited its ongoing strategic review process as the primary reason for its decision.

Destination XL Group stated that its Board of Directors, in consultation with its financial and legal advisors, has thoroughly reviewed Zodiac Partners' proposals. The company emphasized that it remains committed to maximizing shareholder value through its current strategic initiatives. DXL has engaged Evercore as its financial advisor and Ropes & Gray LLP as its legal counsel to assist with the strategic review process. The company has not set a timetable for the completion of this review and has not made any decisions regarding future actions.