Scholastic Corporation (Nasdaq: SCHL), a United States-based global children’s publishing, education and media company, has signed a definitive agreement to acquire independent children’s publisher Cottage Door Press for approximately $71 million, subject to customary purchase price adjustments.
The transaction is intended to expand Scholastic’s position in the early childhood book market, a key focus area for the company, by adding a proven independent publisher with distinctive strengths in early childhood and novelty formats. It is expected to broaden Scholastic’s children’s publishing portfolio across formats, categories and channels, creating new opportunities to reach children and families. Following the closing, Cottage Door will be integrated into Scholastic’s Children’s Book Group and is expected to continue operating with its existing publishing team and entrepreneurial approach, preserving the brand, expertise, creative identity and innovative culture that has driven its success while benefiting from Scholastic’s broader capabilities and resources.
Deal terms and conditions#
- Scholastic will acquire Cottage Door Press for approximately $71 million, before customary purchase price adjustments.
- Cottage Door’s Luna StoryTime products, a line of interactive electronic toys, will be spun off prior to closing and will not be acquired by Scholastic.
- The transaction is expected to close by the end of 2026, subject to customary closing conditions, the completion of the pre-closing separation of the Luna StoryTime business, the receipt of required third-party consents and the entry into new license agreements with certain key licensors, as well as approval by shareholders of one of the sellers.
- Scholastic expects to fund the acquisition with cash on hand and borrowings under its available revolving credit facility.
Executive comments#
“Cottage Door is a strong strategic fit for Scholastic and an attractive investment in an important growth area of the children’s book market,” said Peter Warwick, Scholastic President and Chief Executive Officer. “Dick Maddrell and his team have built one of the fastest growing independent publishers with category-defining formats, concepts and licenses, as well as strong relationships with retailers and families. Bringing their strengths together with Scholastic’s trusted brand, publishing expertise, unique school channels and distribution scale creates meaningful opportunities to build on that momentum and create long-term value.”
“Cottage Door brings a distinctive creative vision to publishing for our youngest readers, with an exceptional ability to develop innovative formats that children want to touch, explore and experience,” said Sasha Quinton, President of Scholastic’s Children’s Book Group. “We have long admired both the creativity of Cottage Door’s publishing and the team that brings those books to market. We are thrilled to welcome them to Scholastic and are excited about what we can create together for children and families.”
“I am incredibly proud of what our team has built over the years, and it was deeply gratifying to see how strongly others valued what we have created. Finding the right home for our brand and our team was an important priority. Scholastic not only understands what makes Cottage Door special, but they share a kid-first culture and can help Cottage Door realize its full potential in this next stage of growth,” said Dick Maddrell, Founder and CEO, Cottage Door Press.
Financial details and background#
Cottage Door Press generated approximately $45 million in net revenue and was strongly profitable during the twelve months ended May 31, 2026. The company, founded in 2014, is the largest independent children’s publisher in the United States and among the fastest-growing in the industry, with particular strengths in board and novelty formats, as well as innovative product development supported by strong digital marketing and go-to-market capabilities.
Scholastic expects the acquisition to contribute to revenue growth and Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in fiscal 2027 and to be accretive in its second year following close, including anticipated synergies. Over time, as Scholastic supports Cottage Door’s continued growth through its broad distribution platform and realizes manufacturing and operating efficiencies, further financial benefits are expected.
Greenhill, a Mizuho affiliate, served as exclusive financial advisor to Cottage Door Press.
