Diamond, whose products include Emerald nuts and Kettle Brand potato chips, said Tuesday that the transaction will more than triple the size of its snack business.
The deal includes $1.5 billion in Diamond stock and the assumption of $850 million of debt. The combined business will be led by Diamond CEO Michael Mendes. Diamond shareholders will own about 43 percent of the combined company.
The deal will give Procter & Gamble a one-time earnings boost of about $1.5 billion, or 50 cents per share.
In recent years, P&G sold Folgers coffee, Jif peanut butter, Crisco shortening and Sunny Delight drinks, leaving Pringles as the last major food brand for the Cincinnati company.
