Scholastic Partners With The Book People

Posted on July 12, 2002

Scholastic has entered a strategic partnership with The Book People, the UK's largest direct seller of books. The Book People sells books through multiple channels, including direct mail to 2 million customers and display fairs in a variety of venues, such as offices, factories, hospitals and schools. The company also sells and fulfills books for the Times of London, The Daily Mail and other newspapers.

The partnership includes Scholastic's acquisition of a 15% equity interest in The Book People and the companies' collaboration in a 50/50 joint venture in direct-to-home bookselling in the U.K. The equity interest and joint venture are steps in the ongoing growth of The Book People, which will continue to be directed by its Chairman, Mr. Ted Smart, and its Chief Executive, Ms. Seni Glaister.

The U.K.venture will be run jointly with The Book People management to revitalize the Red House brand and will market and distribute books for children and adults throughout the U.K under the Red House and School Link names. Red House sells children's books through catalogs mailed to parents at home. School Link sells adult and children's books to families through schools. The Book People will provide Red House access to their 2 million customers, while Scholastic will provide School Link access to its customers in 25,000 schools. Scholastic U.K. will continue to operate its school book fairs, school book clubs, trade, magazines and educational publishing businesses.

Mr. Richard Robinson, Chairman, CEO and President of Scholastic, stated, "The U.K. is a strategically important market for Scholastic, and we are taking a range of actions to strengthen our position in book publishing and distribution. While we continue to concentrate on publishing and selling books and educational materials for children and schools, the association with The Book People will enable us to expand in the children's market while adding capability in focused distribution of books for families."

Ted Smart, Chairman of The Book People, stated, "We are very excited to be working with Scholastic, the global leader in children's book publishing and distribution. Through this joint venture, we will use our direct mail expertise and strong customer base to increase the scope of the highly regarded Red House enterprise while continuing to grow the School Link business. Scholastic is the ideal strategic partner for The Book People and we're confident these agreements mark the beginning of an enduring, mutually beneficial relationship."

Scholastic has also named Mr. Ian Ronald as Managing Director of Scholastic U.K., effective August 12. Ronald, currently Chief Executive of the Wine Society, will succeed David Kewley.