Quality Wool managing director Mark Dyson and Techwool Trading managing director Rod Franklyn, long-time family friends and friendly industry rivals, said the merger reflected strong synergies between their businesses and a shared commitment to grower support during a period of industry change.
Techwool Trading has wool stores at Hamilton, Mortlake and Laverton in Victoria, along with its Kingston store in South Australia.
The stores, as well as its wider northern buying network, will transfer to Quality Wool.
All existing staff will be retained.
The move significantly expands Quality Wool's Victorian and South Australian footprint.
The company already operates sites at Bendigo, Ararat, Benalla, Mansfield and Ballarat in Victoria, with all stores feeding into its major facility and show floor in Geelong.
Mr Dyson said the Techwool sites slotted neatly into Quality Wool's existing network, strengthening coverage across southern SA and Victoria and improving marketing efficiencies for growers.
For Techwool Trading, the merger frees the company to sharpen its focus on its exporting division.
Mr Franklyn said he expected a seamless transition, noting both businesses shared similar values and a family-owned approach.
Quality Wool is celebrating its 35th year in operation this season.