Snyder’s-Lance Inc. (NASDAQ: LNCE) agreed to buy Diamond Foods Inc. (NASDAQ: DMND), the snackmaker that settled an accounting probe with regulators last year, for about $1.27 billion to add Kettle potato chips and Emerald almonds to its offerings.

Diamond’s investors will receive 0.775 of a Snyder’s-Lance share and $12.50 in cash for each of their shares, the companies said Wednesday in a statement. The deal also includes the assumption of $640 million in debt, bringing the total transaction value to about $1.91 billion. The equity offer of about $40.46 a share represents a 16 percent premium to Diamond’s closing price on Tuesday.

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