Northern Ireland-based Tayto Group, owner of Golden Wonder crisps, has acquired Real Crisps from Welsh rival Sirhowy Valley Foods.
The deal, for an undisclosed sum, includes Sirhowy's 65,000 sq ft factory at Newport. All 132 workers at the plant will transfer to Tayto's employment.
The Real Crisps brand is sold in Tesco, Sainsbury's and Asda. The Newport factory also produces own label crisps.
"This is a new and exciting era for the company," said Jeremy Leonard, Real Crisps' MD. "Tayto is one of the biggest crisp manufacturers in the country and we believe its clout will drive the growth of the Real brand."
Sales at Tayto, the UK's third-biggest crisp company, have grown from £15m to £100m in six years.
It bought the Golden Wonder factory and brands in February 2006.