H.J. Heinz Co. has agreed to buy Kraft General Foods Inc.'s All American Gourmet Co., maker of the Budget Gourmet frozen meals and side dishes, for an undisclosed price from Philip Morris Co.

Heinz Senior Vice President David Sculley, who is in charge of the Heinz frozen foods group and Weight Watchers companies, said the acquisition gives Pittsburgh-based Heinz another major brand to complement its Weight Watchers brand in the growing frozen meals category."This acquisition also brings Heinz into a different segment of this category and enables us to become the low-cost producer," said Sculley. "The Budget Gourmet is a brand with unique consumer appeal, with annual sales in the United States of more than $300 million."

All American Gourmet Co., headquartered in Orange, Calif., currently makes all of its products at plants in Atlanta, Ga., and Clearfield, Utah, and employs nearly 1,000 people.