Reporting significant improvement in revenue, Kellogg Corporation is soon going to acquire Diamond Foods. The deal is expected to be finalized at about $1.5 billion.

While both the companies are tight-lipped over the matter as of now, sources said that the deal has almost reached at a final stage.

The acquisition amount could be about $1.5 billion that could equal $35 to $40 a share. Diamond’s share was leveled at about $1.1 billion when the market closed on Friday.

Kellogg, a Michigan-based company, was started in 1906. Its main subunits include cereal Froot Loops, Corn Flakes, and Rice Krispies.

Earlier, in 2012, the company took over Pringles, the potato chip brand, from Proctor & Gamble Corporation. The new deal with Diamond Foods will lead to an expansion in the snack business of the company.

In January this year, Kellogg acquired Bisco Misr, the Egyptian baker, and entered into a distribution deal to expand in Africa. By expanding base in snacks, the company will be able to cut down on cereals, if needed.

The company has been facing a sloth in the demand for cereals over the past nearly one month. The sales in the unit have also declined. The snacks segment constitutes 20% of the total sales.

Diamond, meanwhile, has been suffering stumbling sales since beginning of the year. The company's reported sliding revenue fell in all the four quarters.

Diamond Foods was established in 1912 in California. Nuts have been the company’s specialty. The sub-units include Kettle Brand chips, Emerald snack nuts and Pop Secret popcorn.