Looking forward to its expansion in the growing potato chip market, Diamond Foods Inc. has agreed to acquire Kettle Foods for $615 million.

"By adding Kettle, including its talented team of employees, our snack business will have greater scale, which will help us to drive even greater innovation in the snack market", said Michael J. Mendes, Diamond Foods' Chairman and Chief Executive.

Diamond has expressed that it expects a rise of more than $250 million in its revenues this year.

The acquisition is set to close by the end of Diamond's fiscal year 2010.

Diamond's shares closed at $38.71 on Nasdaq, on Thursday.

It expects to fund the deal with a new five-year, $600 million credit facility.