This fantastic deal prompted Cramer to dig a little deeper and figure out if this could be the time for investors to ring the register and walk away, or decide if the new combined company is worth owning.
"Honestly, I think this is a brilliant deal and Snyder's Lance, LNCE, is absolutely worth buying now that they are rolling up Diamond," Cramer said.
Snyder's-Lance was created back in 2010 when Snyder's —think Snyder's of Hanover Pretzels — and Lance, which made cookies, crackers and chips merged. Today's products include Cape Cod Chips, Pretzel Crisps, and Cramer-fave Nip Cheese and pork rinds.
The reason why Cramer loves this deal so much? While he has seen the health and wellness trend that has swept the U.S. in the past few years, he also knows that it is a country of guilty pleasures. After all, there is a reason why there is such an obesity epidemic in America, the fact is that people still love to eat junk food.
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When Cramer researched the deal, he found that Snyder's and Diamond's foods are very complimentary to one another. All of the categories where Diamond competes are areas where Snyder's-Lance already has a presence. Additionally, he found the two companies were also complimentary on a financial basis.
Most important, both Snyder's-Lance and Diamond Foods are small companies. So combining them together made a ton of sense to Cramer. After all, the larger you are the more pricing power you have.
"I was a big fan of Diamond Foods before we found out it's being bought by Snyder's-Lance, and I think that after this deal closes, the combined company will become a snack food powerhouse that's absolutely worth owning," Cramer said.