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SCHLBullishM&Anews
High materiality8/10

Scholastic to acquire Cottage Door Press for $71M, expanding early-childhood publishing

Sep 29, 2026, 7:19 AM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting

Strategic, relatively modest $71M tuck-in expands SCHL's growth area with accretive potential in 2nd year; aligns with multi-format, multi-channel expansion and existing distribution scale; historically, SCHL has benefited from disciplined acquisitions; however, closing risk and integration remain key contingencies.

AI summary

What happened, with direct paths to the underlying reporting

Scholastic announced a definitive agreement to buy Cottage Door Press for about $71 million, expanding its early-childhood publishing footprint. Cottage Door, a fast-growing independent publisher, will be integrated into Scholastic's Children's Book Group; Luna StoryTime will be spun off before closing. The deal is expected to lift 2027 revenue and Adjusted EBITDA and be accretive in year two as synergies materialize.

  • Scholastic to acquire Cottage Door Press for about $71 million. Closing by end-2026.
  • Cottage Door generated about $45M net revenue in the 12 months ended May 31, 2026.
  • Luna StoryTime will be spun off prior to closing and not acquired.
  • Acquisition to boost revenue growth and Adjusted EBITDA in FY2027; accretive in year two.
  • Funding will use cash on hand and revolver borrowings.

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