Kraft to Sell Its Birds Eye Division : Acquisitions: The $140-million purchase by an Illinois company is part of Philip Morris’ strategy to shed slow-growth units.

Kraft General Foods Inc. said Monday that it has agreed to sell its Orange-based Birds Eye frozen vegetables division to Dean Foods Co. for $140 million.

Birds Eye, which has annual sales of about $250 million, was put up for sale in September as part of a strategy by Kraft’s parent company, Philip Morris Cos., to pare slow-growth divisions.

At the same time, the purchase will provide a brand name to Dean Foods, a Franklin Park, Ill.-based food processor that distributes private-label canned and frozen vegetables. The purchase also doubles Dean Foods’ vegetable business, which now represents about 15% of annual sales of $347 million.

“The vegetable business has been under-performing, and the purchase of a top-quality brand gives them scale and size,” said John M. McMillin, an analyst for Prudential Securities in New York.

“I think it’s a good move for Philip Morris and Dean Foods,” said Roy D. Burry, analyst for the brokerage Kidder, Peabody & Co. in New York. “Birds Eye is not big relative to Philip Morris, and they cannot manage it effectively.”

There are about 25 employees in Birds Eye’s headquarters in Orange, part of a work force of 50 in California and 900 nationwide. Tim Bondy, a Dean Foods vice president, said his company has not yet decided whether to keep those jobs in California, move them or otherwise consolidate functions.

Birds Eye is the No. 3 U.S. seller of plain frozen vegetables, according to Information Resources Inc. in Chicago, and it is No. 1 in sales of prepared frozen vegetables--those packaged with spices or sauces. The firm has processing plants in Minnesota, New York and Mexico.