Scholastic Acquires Cottage Door Press for $71 Million to Bolster Early Childhood Publishing
Event summary
- Scholastic to acquire Cottage Door Press for approximately $71 million, excluding Luna StoryTime products.
- Cottage Door generated $45 million in net revenue and was strongly profitable in the year ended May 31, 2026.
- Transaction expected to close by the end of 2026, subject to customary closing conditions and shareholder approval.
- Cottage Door will be integrated into Scholastic's Children's Book Group, preserving its brand and creative identity.
- Scholastic expects the acquisition to contribute to revenue growth and Adjusted EBITDA in fiscal 2027.
The big picture
Scholastic's acquisition of Cottage Door Press underscores the strategic importance of the early childhood publishing market. The deal reflects a broader industry trend of consolidation among children's publishers seeking to expand their portfolios and distribution capabilities. With Cottage Door's innovative formats and strong retail relationships, Scholastic aims to strengthen its position in a key growth area, leveraging its own trusted brand and extensive distribution network.
What we're watching
- Integration Challenges
- How Scholastic will balance Cottage Door's entrepreneurial approach with its broader capabilities and resources.
- Financial Performance
- Whether the acquisition will meet Scholastic's expectations for revenue growth and EBITDA accretion in fiscal 2027.
- Market Expansion
- The pace at which Scholastic can leverage Cottage Door's strengths to reach new children and families across formats and channels.
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