Scholastic Corporation (Nasdaq: SCHL) announced Tuesday it has signed a definitive agreement to acquire Cottage Door Press, an independent publisher of early childhood books, for approximately $71 million before customary purchase price adjustments. The deal is expected to close by the end of 2026, pending shareholder approval from one of the sellers, third-party consents, new licensing agreements with certain key licensors, and the completion of a pre-closing separation of Cottage Door’s Luna StoryTime interactive toy line, which will be spun off and is not part of the transaction. Scholastic plans to fund the purchase with cash on hand and borrowings under its existing revolving credit facility.
Founded in 2014, Cottage Door Press has grown into the largest independent children’s publisher in the United States and one of the fastest-growing companies in the industry. It built its business around board books and novelty formats designed for interaction and discovery, an early childhood category Scholastic has identified as a key area for growth. Cottage Door generated approximately $45 million in net revenue and was solidly profitable over the twelve months ended May 31, 2026, implying a purchase price of roughly 1.6 times trailing revenue.
Scholastic executives framed the deal as a strategic fit that pairs Cottage Door’s product innovation and retailer relationships with Scholastic’s distribution scale, including its school-based book clubs and book fairs, classroom libraries, and retail and online channels reaching more than 135 countries. The publisher will operate inside Scholastic’s Children’s Book Group and is expected to keep its existing team and entrepreneurial structure intact following the close, rather than being folded entirely into Scholastic’s operations. Greenhill, a Mizuho affiliate, advised Cottage Door on the transaction.
Financially, Scholastic expects the deal to contribute to both revenue growth and adjusted EBITDA in fiscal 2027, and to become accretive, including anticipated synergies, in its second year following closing. Management pointed to further benefits over time as Cottage Door’s titles move through Scholastic’s broader distribution network and as manufacturing and operating efficiencies are realized.
For a company the size of Scholastic, a $71 million acquisition is a relatively contained bet, but it reflects a broader pattern playing out across consumer publishing and media right now: established players with strong distribution networks acquiring smaller, faster-growing, founder-led brands rather than attempting to build the same creative momentum internally. That dynamic is worth watching for investors tracking small and microcap consumer products and publishing companies more broadly. A profitable, founder-built niche publisher generating $45 million in revenue was able to command a meaningful acquisition premium by building genuine category leadership in a specific format, a reminder that scale is not the only path to an attractive exit in consumer media. Smaller companies with differentiated products, loyal retailer relationships, and disciplined profitability continue to be exactly the kind of targets larger, cash-generative acquirers are actively seeking out.