Diaz's acquisition came almost two weeks after Marwin Gonzalez hit free agency, with rumors that Gonzalez was more than likely on his way out.
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Following Diaz's arrival, catcher Brian McCann returned to the Atlanta Braves, after having his option declined by Houston in October.
While change is never easy, the acquisition of Diaz gives the 'Stros a similar Gonzalez-like piece, while maintaining their financial flexibility in the free agent market.
"He's got some versatility, got some power and can do a lot of things," Astros general manager Jeff Luhnow said. "It seems like it's an opportunity for us to improve our team. He can play short, he can play second, he can play a little bit of left, can play third. This is a guy about as versatile as any of the other guys on our roster."
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In 2016, Diaz finished fifth in National League Rookie of the Year voting, while being named to the N.L. All-Star team.
For his career, Diaz has a batting average of .275, with 42 home runs and 140 runs batted in.
While injuries have hampered Diaz throughout his three seasons in the majors, his toolbox offensively and defensively gives the Astros something they desperately need.