The company was founded in NYC in 1885 as Binney & Smith. The founders were cousins Edwin Binney and C. Harold Smith.
Binney & Smith's initial products were colorants for industrial use, including red oxide pigment and carbon for making tires black. In 1900 the company added production of slate school pencils. Binney's experimentation with industrial materials including slate waste, cement, and talc, led to the invention of the first dustless white chalk, for which the company won a gold medal at the St. Louis World's Fair in 1902.
In 1903, the company produced another innovation, the first child-friendly crayons, which it sold under the brand name "Crayola." The crayons that had existed previously were made from wax, dull in color, and used mainly in industry. The word "Crayola" was coined by Alice Stead Binney, Edwin's wife, who took the French words for chalk, craie, and oily, oléagineux, and combined them. The National Museum of American History has described the first Crayola crayons as an "overnight success". In 1999 Crayola crayons became one of the first inductees in the National Toy Hall of Fame.
Since 1984, the company has been a subsidiary of Hallmark Cards.
On January 1, 2007, the company changed its name from "Binney & Smith" to "Crayola". Information released by the company stated that the new name was adopted to showcase the company's well-known brand, which was in use in more than 80 countries and had 99% name recognition in U.S. consumer households.
The company has been based in Easton, Pennsylvania, since the early 1900s. Its manufacturing facilities are located there and in Bethlehem, Pennsylvania, and Mexico City. There are about 1,250 employees worldwide.