Textile entrepreneur Bill Collins has bought a Bury-based dyeing and finishing business out of administration, saving 20 jobs and adding £1.6m to his group's turnover.
Blacksheep Textiles, based on Bolton Road, Hawkshaw, went into administration in September.
More than 80 per cent of its revenues come from Mr Collins' Thornber Home & Leisure business, which is based in Clitheroe.
He formed the company in the summer with two minority investors to effect a buyout of James Thornber, a £5m-turnover, family-owned fabric manufacturer in the town where he was commercial manager.
The business weaves fabrics for upholstery, curtains, blinds and other furnishings.
It operates in the domestic and contract markets. Mr Collins said he plans to spend £1m on equipment to upgrade Blacksheep's operations over the next 18 months.