Zodiac Partners Increases Destination XL Offer To $0.84, Valuing It At $46.4M
DXLG•Zodiac Partners II raised its tender offer for Destination XL to $0.84 per share, valuing the company at $46.4 million versus its $37.6 million market cap, after DXL's board rejected an earlier $0.82 bid. DXL's Q1 loss widened to $5.9 million on a 2.1% sales decline to $103.3 million.
1. Tender Offer Increase
Zodiac Partners II raised its tender offer for Destination XL Group from $0.82 to $0.84 per share on June 23, extending the expiration to July 24 and aiming to acquire all outstanding shares.
2. Valuation Versus Market Cap
The $0.84 bid values Destination XL at $46.4 million, a premium to its $37.6 million market capitalization, and is backed by $47 million in cash and a $12 million equity commitment from Camac Fund.
3. Board Response and Financing
Destination XL’s board unanimously rejected Zodiac’s initial offer at the end of May, prompting the acquirer to approach shareholders directly with a binding equity commitment and an indicative $75 million credit facility term sheet.
4. Recent Financial Performance
In the first quarter, Destination XL reported a net loss of $5.9 million on sales of $103.3 million, a 2.1% year-over-year decline, with comparable-store sales down 3.8%.
