Scholastic Corporation has finalized sale-leaseback deals for its New York City headquarters and Jefferson City distribution center, bringing in $481 million in total proceeds.
After accounting for expenses, the Company estimates net proceeds of $401 million, to be allocated towards capital priorities like share repurchases.
The transactions signify a strategic move to enhance shareholder value and operational efficiency, enabling continued growth and capital deployment.
Net Proceeds
Transactions resulted in an estimated $401 million in net proceeds for Scholastic Corporation.
Capital Allocation
Funds will be used in alignment with the Company's capital allocation priorities, particularly for share repurchases.
Strategic Benefit
Sale-leaseback transactions aim to unlock value from non-operating assets and fuel sustained value creation for shareholders.
Operational Footprint
The deals have substantially reduced Scholastic's operating footprint, enhancing capital deployment capabilities.
Advisory Support
Newmark Group, Inc. advised on financial matters, Hogan Lovells provided legal counsel, and Gagnier Communications handled strategic communications for the transactions.
- The successful completion of the transactions demonstrates Scholastic's commitment to efficient capital management and value creation for stakeholders.
- By increasing liquidity and reducing operating footprint, Scholastic is poised to drive long-term growth and enhance shareholder returns.
The sale-leaseback transactions mark a significant milestone for Scholastic Corporation, positioning the Company for continued success in creating value for shareholders and sustaining growth.