Scholastic signs $71 million purchase of early-childhood publisher Cottage Door

Scholastic ($SCHL) agreed to buy Cottage Door Press for approximately $71 million, subject to customary price adjustments. The independent publisher generated about $45 million of revenue in the twelve months to May and brings a portfolio of early-childhood, board and novelty books. Scholastic plans to finance the purchase using cash and its revolving credit facility.

The buyer expects the business to add revenue and adjusted EBITDA in fiscal 2027, with accretion anticipated in the second year after completion, including synergies. These benefits are forecasts rather than achieved results. Cottage Door’s Luna StoryTime electronic-toy business is excluded and must be separated before closing. Completion is targeted by year-end, subject to third-party consents, licensing arrangements, approval by shareholders of one seller and other customary requirements.

Sources:

• Issuer release