Paton leads troops into challenging 2009

Hilton Fabrics has shown confidence in Australia's fragile textile sector spending "millions" to acquire a second business and boosting staff by at least 10 per cent.

The Victorian headquartered group, led by general manager Frank Paton, last month bought 10-year-old knitted fabric-specialist Quick Response Fabrics (QRF) from former owners Josh and Mary Pila.

It is understood the first approach was made to Hilton around 12 months ago with the Pila's heading for retirement after a history in the textile sector spanning 22 years.

While Paton refused to discuss the cost of the acquisition he admitted it was a "multi-million dollar deal".

The agreement, effective December 1, included the privately owned business, equipment, property and land.

Around 40 staff have been affected with all offered positions at the new entity, which will be rebranded as Hilton Dyers and Finishers.

Paton said the new group would continue to service the needs of existing clients from both businesses, including Qualitops, Kea, Travesty, Fletcher Jones, Warwick Fabrics, Bekaert and Defab.

"The sale has been well received as the new business will continue with its existing service and new equipment will be installed to process QRF's high quality fabrics. This new equipment will also enable the business to diversify into other markets."