Macquarie Textiles was originally formed under the name Amalgamated Textiles (Australia) Ltd. in Albury, NSW, in March 1923. The organisation's intention was to establish three woollen mills in the NSW area which could undertake the full process of woollen and worsted cloth manufacturing under one company. The Albury woollen mill began operating in 1925, followed by another in Orange, NSW in 1926, and the third in Goulburn, NSW in 1929. In 1956, the company changed its name to Macquarie Worsteds Ltd., closed the Goulburn mill, and moved their head office from Sydney, NSW, to Orange. Ascot Investments Pty. Limited took over Macquarie Worsteds in 1982, changing the name to Macquarie Textiles Pty. Limited. In 1987, the Macquarie group became subsidiaries of General Investments Australia Ltd. The Orange mill closed in 1989. By 1992, the company had acquired Foster Valley in Geelong, Aweave, John Vicars & Co., Warrnambool Woollen, and Onkaparinga Woollen Company, and in 1994, the organisation's name was changed to Macquarie Textiles Group Ltd. to better reflect their recent acquisitions. In 2013, it was announced that the Albury factory would be closed in favour of importing materials from China and India, with only the local warehouse left in operation. As of 2024, the business continues to operate under Macquarie Textiles Pty. Limited in Albury, NSW, after ceasing the Macquarie Textiles Group Ltd. name in 2021.

Onkaparinga Woollen Company originated in Hahndorf, SA in 1869 by two German brothers, Heinrich and Edward Kramm before moving to Lobethal, SA. The first mill, Lobethal Tweed Factory, opened in 1872, but experienced a troubled history with several closures and take-overs until 1883 when it reopened as the South Australian Woollen Factory. This venture proved successful for many years, and eventually the company renamed to Onkaparinga Woollen Mill Company in 1928. The Onkaparinga brand of wool blankets became iconic in Australian households, and gained worldwide recognition during the country's post-WWII economic and wool export boom. The company was owned under the Bardak Pty. Ltd. company, and traded as Onkaparinga Textiles Limited prior to being taken over by Macquarie Worsteds Limited in 1983. The company is also associated with the names Macquarie Woollen Textiles Pty. Ltd., and Macquarie Woollen Company Pty. Ltd. The Onkaparinga Woollen Mill closed in 1993 as production became outsourced. As of 2024, the Onkaparinga brand continues under the ownership of William A. McNeil & Co. Pty. Ltd.