They're connected in the Japanese G1 continuity, specifically, they appear in an episode of the Japanese Headmasters series.
As a kid, I always did somewhat associate Battle Beasts (Beastformers) with Transformers, primarily because of the use of rub signs on the little guys. They were great because they were sooo cheap and came 2 to a package (and they weren't blindpacked so you knew what you were getting).
Those were the only toy when I was a small child that I could actually afford to buy myself by simply saving up spare change from my lunch money (of course, that lunch money came from my parents too, but still

).