Scholastic to Acquire Cottage Door Press for $71 Million

Scholastic Corporation (NASDAQ:SCHL), a prominent children's publishing and media company, has agreed to acquire Cottage Door Press, a leader in early childhood publishing, for approximately $71 million. This acquisition is aimed at bolstering Scholastic’s presence in the early childhood book market, a priority for the company.

Peter Warwick, Scholastic's President and CEO, emphasized that Cottage Door represents a strategic alignment and a significant investment in a growing sector of the children's market. He noted the company’s rapid growth and its strong relationships with retailers and families as key factors in the acquisition. Initial estimates suggest that the acquisition will enhance Scholastic's portfolio across various categories and distribution channels, thereby creating more opportunities to engage with children and families.

Founded in 2014, Cottage Door has quickly become the largest independent children's publisher in the U.S., recognized for its innovative approach to early childhood books, particularly in board and novelty formats. Scholastic's Children’s Book Group President, Sasha Quinton, praised Cottage Door's creative direction and expressed excitement about the potential for collaboration.

Cottage Door's Founder and CEO, Dick Maddrell, stated that the acquisition underscores the value of their brand and is a crucial step in the company's future growth. He noted that Scholastic shares a similar commitment to prioritizing children’s interests, which aligns perfectly with Cottage Door's culture.

The acquisition will move forward pending customary closing conditions and is expected to finalize by the end of 2026. As part of the agreement, Cottage Door's electronic toy line, Luna StoryTime, will be separated prior to the acquisition.

Cottage Door Press reported around $45 million in net revenue and profitability for the year ending May 31, 2026. Scholastic anticipates that the acquisition will not only promote revenue growth but also enhance Adjusted EBITDA in the fiscal year 2027, with anticipated synergies expected in subsequent years. Greenhill, a Mizuho affiliate, acted as the exclusive financial advisor for Cottage Door in this transaction.

For over a century, Scholastic has been dedicated to fostering literacy and personal development in children. With this acquisition, Scholastic aims to continue its legacy of creating quality content and enriching the lives of young readers.