Cork shipping company Mainport has bought a smaller rival in a move that will create a business with revenues of almost €60 million.

Mainport said yesterday that it has bought Drogheda-based Patrick Monahan, a stevedoring and shipping company, for an undisclosed sum.

Monahan's had a turnover of €12 million in 2005, while Mainport's sales are likely to hit €45 million this year. At those rates, the combined business will have revenues of €57 million.

Both companies are privately held, family-owned businesses. The Monahan family of Drogheda owns Patrick Monahan while the Ronaynes own Mainport.

Its chief executive, David Ronayne, indicated that as both companies are involved in the same activities, the deal created scope for savings. However, there is no likelihood of job losses.

"The business will continue to operate as heretofore and we are excited about the prospect of combining our expertise, consolidating the existing business and attracting new business to the area," he said.

Mainport's statement said that a key attraction of Monahan's was the fact that its business is located close to Bremore, the site of the new proposed national deepwater port.

Monahan's facilities include 90,000 sq ft (8,361.2 sq m) of office, plant and warehousing in Drogheda's lower port. It handles paper, steel, containers and bulk agricultural products.

Mainport was in the news recently when it announced that it has signed a deal with Italian oil giant, Agip, to supply it with barges for removing waste from oil drilling from Kazakhstan via the Caspian Sea. The contract is worth €5.4 million. Mainport has extensive operations in Cork, Shannon and South Africa.