Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of snack maker Diamond Foods (Nasdaq: DMND) popped, and once they popped they couldn't stop. After announcing the acquisition of the Pringles brand from Procter & Gamble (NYSE: PG), shareholders pushed Diamond shares up as much as 12% today.

So what: Diamond agreed to take over the Pringles brand from P&G for $2.35 billion, which will consist of $1.5 billion in Diamond shares and the assumption of $850 million in Pringles debt. The deal will split off the Pringles business via an exchange offer that will allow P&G shareholders to swap P&G shares for shares of Diamond. It will also include an adjustment mechanism that will, based on Diamond's stock price prior to the stock exchange, increase or decrease the amount of debt Diamond will assume.

Now what: Strategically, the deal makes sense for both sides. P&G was interested in shedding its lone snack-food brand, while Diamond has been eager to bulk up its brand portfolio to better compete with larger snack forces like Pepsi (NYSE: PEP) and its Frito Lay empire. While P&G shareholders could have perhaps wished for a better deal for Pringles -- a higher price, an all-cash deal, etc. -- the deal leaves them with less to fret about. Diamond shareholders, on the other hand, may want to add a "cautious" in front of their obvious optimism -- this is a huge transaction for the company and it's adding to an already sizable debt load.

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