Crayola, the iconic crayon company known for its bright colors and creative naming, has been around for over a century. But over those 100+ years, the company has changed hands several times between different parent corporations. So who owns Crayola today? Let’s take a look at the history and trace the ownership to find out.
The Origins of Crayola
Crayola got its start in 1885 as Binney & Smith, a company founded by cousins Edwin Binney and Harold Smith in New York City. Binney had developed a new wax crayon product that was safe, nontoxic, and designed specifically for artistic use by children. This was in contrast to other wax crayons at the time that were made with lampblack and pigment, which could be toxic.
Binney & Smith began selling their new Crayola crayons (a name coined by combining the French word “craie,” meaning chalk, and “ola” for oily) in 1903. The crayons were an immediate success as the Crayola brand quickly became known for its high quality, bright colors, and innovative packaging.
Over the next few decades under Binney & Smith, Crayola steadily expanded its product line beyond crayons to include markers, modeling compounds, paints, and more art supplies. They also grew internationally, bringing their Crayola branded products to Europe, Latin America, and Asia.
Acquisition by Hallmark Cards
In 1984, Binney & Smith was acquired by Hallmark Cards, the privately owned company known for greeting cards, gift wrap, and other paper products.
Hallmark purchased Binney & Smith for $204 million, attracted by steady growth of the Crayola brand. As part of Hallmark, Binney & Smith was able to leverage the parent company’s resources and distribution network to further grow Crayola sales and reach.
This began a period of over two decades where Crayola was owned by Hallmark Cards. During this time, Hallmark supported Crayola’s expansion in Europe and Asia as well as the continued growth of its product lines.
Some notable Crayola innovations and launches under the Hallmark Cards ownership include:
– Launching the Crayola «My First Crayola» line of art supplies for toddlers in 1990
– Releasing the Crayola «Color Mix-Up» crayons in 1997 with two colors swirled into one crayon
– Bringing Crayola art products into Hallmark Gold Crown stores starting in 2000
– Growth in licensed Crayola partnerships and merchandise like apparel, digital apps/games, arts and crafts kits, and more
Spin-off and IPO as Crayola LLC
In 2004, Hallmark made the decision to spin-off Binney & Smith into its own entity focused primarily on the Crayola brand. This new company took the name Crayola LLC.
The stated reason behind the spin-off was to allow Crayola to singularly focus on the growth of its brand and products, without being restricted by the greeting card business of its parent company.
As part of the spin-off transaction, Hallmark retained a 50% equity stake in Crayola. So while now operating independently, Hallmark maintained half ownership in the iconic crayon maker.
Just two years later in 2006, Crayola took another major step by becoming a publicly traded company. Crayola LLC held an initial public offering (IPO) of stock under the symbol “CRAY.”
Part of the motivation behind the IPO was to create a path for Hallmark to fully divest its ownership stake. By selling portions of its equity on the public market over time, Hallmark could monetize its investment in Crayola.
Acquisition by Dixon Ticonderoga
In 2011, after five years as a publicly traded company, Crayola was acquired by Dixon Ticonderoga.
The purchase price was $500 million paid to Crayola shareholders. With this, Dixon Ticonderoga took Crayola private again less than 10 years after its IPO.
Dixon Ticonderoga is another storied American maker of art supplies and office products dating back to the 19th century. At the time of the Crayola acquisition, Dixon was jointly owned by two even larger corporations:
– Newell Brands – a consumer products conglomerate owning brands like Sharpie, Elmer’s, Yankee Candle, and more.
– Pacon Corporation – a manufacturer and wholesale distributor of teacher and school supplies.
So with the Dixon Ticonderoga purchase, Crayola became part of a portfolio of craft and school supply brands under these two owners.
Spin-off into Independent Company
Crayola’s time under Dixon Ticonderoga ownership was relatively short-lived. In early 2022, it was announced Crayola would again become a standalone business independent from Dixon.
The new Crayola LLC was formed with substantial investment from Carlyle Group, a private equity firm. Crayola products had reportedly delivered strong growth under Dixon, making it an attractive target for investment.
With this spin-off finalized in July 2022, Crayola returned to being an independently owned and operated company. The company stated that independence would allow an enhanced focus on innovation, growth, and creative play.
While financial details were not disclosed, Crayola LLC is estimated to be worth several billion dollars as a standalone business. And Carlyle Group now holds a majority stake in the crayon maker.
The Ownership History of Crayola Summarized
Here is a summary of the key events in Crayola’s 100+ year history of ownership changes:
| Years | Parent Company / Owner |
|---|---|
| 1885 – 1984 | Binney & Smith (founders) |
| 1984 – 2004 | Hallmark Cards |
| 2004 – 2006 | Crayola LLC |
| 2006 – 2011 | Publicly traded company |
| 2011 – 2022 | Dixon Ticonderoga |
| 2022 – Present | Independent Crayola LLC |
As this history shows, while Crayola has been able to maintain its brand identity through various ownership changes, the actual parent company has shifted numerous times. The driving force behind most of these shifts was Crayola’s continual growth and profitability as an art supply leader for kids.
Binney & Smith founded a brand that turned into a perpetual success story, as evidenced by large companies continually seeking to add Crayola to their portfolios. After peaking as a public company, Crayola settled into a string of private owners.
Now as period of independence under Carlyle Group, the crayon maker seems poised to continue flourishing thanks to its unmatched brand recognition and deep connection with creative children and parents.
Conclusion
Crayola started out over a century ago as a small crayon maker owned by its founders. After many decades of steady growth, the brand became a crown jewel coveted by larger corporations. It spent significant time owned as a subsidiary of Hallmark Cards, had a short run as a public company, and later became part of Dixon Ticonderoga.
Today, after a series of ownership changes, Crayola LLC operates independently with financial backing from private equity. The Crayola name remains iconic among children’s art supplies, especially crayons, where it undoubtedly holds the dominant market share. While parents and kids may just associate Crayola with fun colors and creative play, the company has navigated many ownership structures throughout its long history, ultimately coming full circle back to independence.
