3M (NYSE: MMM) has agreed to sell its Opticom Priority Control Systems and Canoga Traffic Detection businesses to TorQuest Partners, a Toronto-based private equity firm. No financial terms were disclosed. TorQuest will form a new combined company based in St. Paul, Minn., which will be led by Rick Sachse, who previously ran the businesses for 3M.

Active Interest Media Inc., an El Segundo, Calif.-based enthusiast media company, has acquired Backpacker Magazine for an undisclosed amount. AIM was formed in 2003 by Wind Point Partners.

Advent International has agreed to acquire UK-based shareholder services provider Lloyds TSB Registrars from Lloyds TSB for £550 million. Lehman Brothers advised Lloyds TSB.

AIG Newbridge Capital has retained Goldman Sachs to manage a sale process for South Korean telecom company Hanaro Telecom, according to published reports.

Apax Partners and OMERS Capital Partners have agreed to acquire the Thomson Learning and Nelson Canada divisions of Thomson Corp. (NYSE: TOC), for approximately $7.75 billion. The deal is expected to close next quarter, with acquisition finance being provided by The Royal Bank of Scotland, JPMorgan, Citigroup, UBS and The Royal Bank of Canada. Morgan Stanley and RBC Capital Markets are advising Thomson on the deal. (Thomson Corp. is the parent company of Buyouts publisher Thomson Financial).

Apollo Management has again sweetened its take-private offer for logistics company EGL Inc. (Nasdaq: EAGL), with its revised $47.50 per share bid valuing the company at $2.01 billion. Apollo has been in a back-and-forth bidding battle with a consortium that includes EGL CEO Jim Crane, Centerbridge Partners and The Woodbridge Co. That group previously raised its bid to $46.25 per share.

Arbor Investments has completed its acquisition of Sam’s Wines and Spirits, a Chicago-based wine and beverage retailer. No financial terms were disclosed for the deal, which was done in partnership with the founding family.

Bain Capital Partners and Catterton Partners have increased their buyout offer for OSI Restaurant Partners Inc. (NYSE: OSI), a restaurant operator whose brands include Outback Steakhouse, Cheeseburger in Paradise, Roy’s and Carrabba’s Italian Grill. The amended deal raises the price per share from $40 to $41.15. A shareholder vote is scheduled for May 25. OSI founders Chris Sullivan, Robert Basham and J. Timothy Gannon also are participating on the bid. Wachovia Securities is serving as financial advisor to OSI.

BB&T Capital Partners has acquired Innovative Container, a Greenville, S.C.-based industrial container reconditioning and manufacturing company. No financial terms were disclosed. The company previously had been controlled by founder Chad Odom.

Berkshire Partners has acquired a controlling interest in HMT Inc. from Nassau Point Investors LLC. No financial terms were disclosed. HMT is a Houston, Texas-based provider of aboveground storage tank maintenance products and services, primarily for the petroleum and petrochemical industries.

Bertram Capital has acquired a majority interest in Physicians Management Group LLC, a Los Angeles-based provider of revenue cycle management services to the health-care industry. No financial terms were disclosed.

The Blackstone Group has agreed to acquire Alliance Data Systems Corp. (NYSE: ADS) for $7.8 billion, including assumed debt. ADS shareholders would receive $81.75 per share, which represents a 29.84 percent premium over the previous day’s closing price of $62.96. Banc of America Securities and Lehman Brothers are advising ADS.

The Blackstone Group, KKR and Lion Capital, are believed to be preparing a £8 billion offer for the US beverages arm of Cadbury Schweppes, which owns the Dr. Pepper and 7Up brands. A British newspaper also reported that a rival consortium had been established, thought to include Bain Capital, TPG and Thomas H. Lee Partners.

Blackstreet Capital Management has acquired Swift Spinning Inc., a Columbus, Ga.–based cotton yarn manufacturer, from Marubeni Corp. No financial terms were disclosed.

Box Studios, a New York-based provider of digital retouching and digital post-production services, has raised an undisclosed amount of private equity funding from Friend Skoler & Co. Brantley Partners has acquired Flash Global Logistics, a Pinebrook, N.J.–based provider of same-day delivery of critical spare parts to large tech, security and telecom companies. Brantley was joined on the deal by AIG and HSBC, both of which also are limited partners in Brantley’s current fund.

British Airways has agreed to join a TPG-led consortium making a bid for Iberia Lineas Aereas de Espana SA, according to a report. BA decided to join the consortium, which also includes Spanish private equity firms Vista Capital, Ibersuizas and Quercus, after “intense” talks, according to the report.

Canon Communications LLC of Los Angeles has acquired four manufacturing technology events from UK-based Trident Exhibitions Ltd. The shows are: IPOT; Machine Vision and Displays Technology; MTEC; Machine Building, Drives & Automation; and Practical Vacuum. No financial terms were disclosed. Canon is controlled by Spectrum Equity Investors.

The Carlyle Group reportedly has dropped out of the auction for Orange, the Dutch subsidiary of France Telecom. It had been part of a group that still includes Providence Equity Partners and Rabo Capital—which is on the shortlist alongside T-Mobile and ABN Amro Capital.

Cerberus Capital Management is planning a bid for Bell Canada parent BCE, according to The Globe & Mail. Prior reports have suggested that BCE also will receive bids from the Canadian Pension Plan Investment Board and Ontario Teachers’ Pension Plan. Such a deal could be worth upwards of $45 billion.

DaimlerChrysler has agreed to sell an 80.1% stake in Chrysler to private equity firm Cerberus for approximately $7.8 billion. DaimlerChrysler only will receive $1.3 billion in capital from the deal, with the remainder coming in the form of working capital that Cerberus would pump into Chrysler. It will retain a 19.9% ownership position. Daimler bought Chrysler in 1998 for around $36 billion.

Dollar General Corp. (NYSE: DG) said that it will hold a special shareholders meeting on June 21, in order to vote on a proposed $22 per share buyout by Kohlberg Kravis Roberts & Co. The total deal is valued at approximately $7.3 billion (including around $380 million in net debt), with Goldman Sachs and Lehman Brothers to provide leveraged financing. Lehman and Lazard are serving as financial advisors to Dollar General.

Doral Financial Corp. (NYSE: DRL) has agreed to sell $610 million in stock to a buyout consortium that will control 90 percent of the company. Bear Stearns Merchant Banking is leading the $0.63 per share recapitalization, with other participants including Marathon Asset Management, Perry Capital, D. E. Shaw, Tennenbaum Capital Partners, Eton Park Capital Management, Goldman Sachs, Canyon Capital Advisors and GE Asset Management.

Firth Rixon Ltd., a Sheffield, UK–based provider of specialty medical products, has acquired Future Tech, a machiner of large aerospace components. No financial terms were disclosed. Firth Rixon is majority-owned by The Carlyle Group.

General Electric confirmed that it has agreed to sell its GE Plastics division to chemical company Saudi Basic Industries for approximately $11.6 billion in cash. GE will receive after-tax proceeds of around $9 billion. Other bidders had included Apollo Management and Dutch plastics company Basell.

Genesis HealthCare Corp. (Nasdaq: GHCI) has agreed to an amended buyout agreement with Formation Capital and JER Partners, after also being pursued by rival bidder Fillmore Capital Partners. The new deal is for $69.35 per share, compared to an initial agreement for $64.25 per share. Fillmore’s most recent offer had been $65.25 per share. Genesis is a Kennett Square, Pa.-based long-term care provider with over 200 skilled nursing centers and assisted living residences in 13 eastern states.

GMAC Insurance, a business unit of GMAC Financial Services, has agreed to acquire Provident Insurance, the UK-based automotive insurance division of Provident Financial PLC. The deal is valued at approximately £170 million in cash, and is expected to close later this quarter. GMAC is owned by Cerberus and General Motors.

Gulf Fleet Management, a Lafayette, La.-based provider of personnel and supply transport services to the oil & gas market, has raised an undisclosed amount of private equity funding from H.I.G. Capital.

Ingersoll-Rand Co. (NYSE: IR) said that it is exploring strategic alternatives for its Bobcat and construction-related businesses, which could include a sale or public spinout. The involved companies reported approximately $2.6 billion in 2006 revenue. Ingersoll-Rand said it expects to conclude the process in the second half of this year.

Insight Global Inc., an Atlanta-based provider of IT consultants to Fortune 1000 companies, has received an undisclosed amount of private equity funding from H.I.G. Capital.

Intel Corp. and STMicroelectronics announced plans to merge their flash memory businesses into a new company that would have annual sales of $3.6 billion. Intel would hold a 45.1 percent position, STMicro would hold 48.6 percent and the remaining 6.3 percent would go to Francisco Partners, in exchange for a $150 million investment.

Inter-Tel Inc. (Nasdaq: INTL) has received a $26.50 per share buyout offer from Vector Capital, which tops an agreed-upon $25.60 per share offer from Mitel Networks Corp. This is the third raised bid from Vector, which is working with Inter-Tel’s founder and former CEO Steven Mihaylo.

Keane Inc. (NYSE: KEA) shareholders have approved a $14.30 per share buyout by Caritor Inc., a San Ramon, Calif.-based IT services provider. The total deal is valued at approximately $854 million, with Caritor receiving equity financing from existing shareholder Citigroup Venture Capital International and leveraged financingfrom Citigroup Global Markets, UBS Securities and Bank of America Securities.

KKR is one of four finalists to acquire a significant minority position in Air Canada Technical Services, according to The Globe & Mail. The entire company is believed to be valued at between C$700 million and C$1 billion, with Air Canada expected to sell between 42 percent and 49 percent. Other bidders include Onex, Deutsche Lufthansa and an undisclosed non-Canadian firm.

LaSalle Capital Group and Marquette Capital Partners have acquired Paramount Building Solutions Inc., a provider of outsourced janitorial services to the retail industry. No financial terms were disclosed.

Lehman Brothers has agreed to acquire Eagle Energy Partners, a Houston, Texas-based energy services company. No financial terms were disclosed. Lehman already owned a one-third stake in Eagle Energy.

Limited Brands Inc. (NYSE: LTD) has agreed to sell its 67 percent interest in its Express brands to Golden Gate Capital for $548 million. The deal is expected to close by July 6. Limited Brands also announced that it would consider a sale of its Limited stores business, in order to refocus on other units like Victoria’s Secret and Bed, Bath & Beyond.

Main Line Broadcasting, a portfolio company of Arlington Capital Partners, has agreed to acquire ten radio stations from Radio One Inc. No financial terms were disclosed for the deal, which includes stations in the Louisville, Ky., and Dayton, Ohio, markets.

Marlin Equity Partners has acquired Aldon, an Emeryville, Calif.–based provider of application lifecycle management solutions. No financial terms were disclosed.

Monitor Clipper Partners has sponsored a recapitalization of Access Communications LLC, a Berkeley Heights, N.J.–based healthcare marketing and communications agency. No financial terms were disclosed.

M/C Venture Partners and Wachovia Capital Partners have agreed to acquire wireless and fiber optic infrastructure company National Grid Wireless US from National Grid PLC for approximately $290 million. National Grid Wireless US operates a communications infrastructure portfolio consisting of approximately 350 communications towers and over 1,100 route miles of dark fiber. It also develops outdoor distributed antenna systems.

Milestone Partners has acquired Interconnect Devices Inc., a Kansas City-based designer and manufacturer of spring contact probes and electromechanical connection products. No financial terms were disclosed.

New Mountain Capital has acquired a majority position in Inmar Inc., a Winston-Salem, N.C.-based provider of reverse logistics and promotions logistics services to over 1,700 retailers, manufacturers and wholesalers across North America. No financial terms were disclosed.

One, an Austrian mobile operator previously known as Connect Austria, reportedly is on the auction block for approximately €1.4 billion. German utility E.ON AG holds a 50 percent stake, while other shareholders include TDC AS, France Telecom and Telenor AS.

One Equity Partners has completed its acquisition of the Emissions Technologies group of ArvinMeritor Inc. (NYSE: ARM) for approximately $310 million. The group primarily serves manufacturers of light and commercial vehicles.

PAI Partners has offered to acquire KB Home‘s 49 percent stake in French subsidiary Kaufman & Broad for more than $800 million. PAI’s offer is binding but remains subject to customary terms and conditions including regulatory approval. The transaction could close during the third quarter of 2007.

Pearlman Industries Inc., a Commerce, Calif.–based provider of diamond cutting products and abrasives, has acquired Dimensional Tools Inc., a Dallas-based distributor of products for the stone fabrication market. No financial terms were disclosed. Pearlman was recently acquired by Harbour Group.

Permira has offered to acquire all of Italian fashion house Valentino Fashion Group SpA, after previously having agreed to buy a minority position. The move came in response to a possible all-in bid from The Carlyle Group, which Dow Jones reports will not try to best the Permira offer of €35 per share.

PlantCML, a Temecula, Calif.–based provider of mission-critical communications systems for emergency contact centers, has acquired Sigma Communications LLC, creator of the Reverse 911 emergency notification technology for management agencies, law enforcement, and other public safety agencies. No financial terms were disclosed. PlantCML is a portfolio company of Golden Gate Capital.

Pouschine Cook Capital Management has acquired a control position in Great Lakes Home Health and Hospice, a Great Lakes, Mich.-based operator of six hospice facilities and provider of home healthcare and hospice services. No financial terms were disclosed for the deal.

The Riverside Company has acquired WorkPlace Media, a Mentor, Ohio–based marketing firm that targets at-work consumers. No financial terms were disclosed.

Silver Lake Partners and ValueAct Capital have agreed to acquire Acxiom Corp. (Nasdaq: ACXM) for $3 billion. The transaction price includes approximately $756 million of assumed debt, with Acxiom to receive $27.10 per share (14 percent premium to the previous day’s closing price). Acxiom was advised on the deal by Stephens Inc. and Merrill Lynch. It is a Little Rock, Ark.-based provider of customer and information management solutions to large companies.

Smart Business Advisory and Consulting LLC, a Devon, Pa.-based business consultancy, has raised $60 million in private equity funding from Great Hill Partners. No additional deal terms were disclosed.

Soros Strategic Partners and Kinderhook Industries have agreed to acquire six high-end steak and seafood restaurants from Mastro Group LLC. The deal is valued at $180 million, including $70 million in equity.

Spectrum Equity Investors and Technology Crossover Ventures have agreed to acquire a majority interest in futures brokerage R.J. O’Brien & Associates Inc. No financial terms were disclosed for the deal, which will result in the O’Brien company retaining a “substantial minority ownership in the company.”

Spell Capital Partners has acquired a majority stake in Arctic Fox LLC, a Delano, Minn.–based provider of components to the heavy-duty trucking and off-highway equipment markets.

Tailwind Capital Partners has sponsored a recapitalization of Trover Solutions Inc., a Louisville, Ky.–based provider of outsourced claims recovery services and recovery software to the healthcare and property and casualty insurance industries. No financial terms were disclosed, except that Allied Capital supported the deal with $90 million in debt financing.

Telefonica is expected to receive three bids for its 75 percent stake in Dutch television producer Endemol, which is valued at approximately £2 billion. The bidders reportedly include Apax Partners with Thomas H. Lee Partners, PAI Partners with Bernard Arnault; and Italian media group Mediasat.

TPG and GS Capital Partners have agreed to acquire Alltel Corp. (NYSE: AT), in a transaction valued at $27.5 billion. Under terms of the deal, Alltel shareholders would receive $71.50 per share in cash, which is a 23 percent premium over the company’s stock price before media reports of a potential buyout were first printed in late 2006. Alltel stock closed last Friday at $65.35 per share. Leveraged financing will be provided by Goldman Sachs, Citigroup, Barclays and RBS. Alltel is being advised by Merrill Lynch, Stephens Inc. and JP Morgan Securities and said that CEO Scott Ford would remain in place post-buyout.

Varel Holdings Inc., a maker of drill bits for the oil and gas and mining industries, has acquired Pendemak Industries Ltd., Canadian distributor of Varel oil field drill bits for the past 26 years. The only financial terms disclosed were that Varel minority shareholder American Capital Strategies provided $16 million in the form of a senior unirate loan. Apollo Investment Corp. also provided unirate notes. Varel’s majority shareholder remains KRG Capital Partners.

Warburg Pincus has agreed to acquire Bausch & Lomb (NYSE: BOL) for approximately $4.5 billion. The price tag includes around $830 million in assumed debt, with Bausch & Lomb shareholders to receive $65 per share. Under terms of the agreement, Bausch & Lomb may solicit superior proposals for the next 50 days, but would be required to pay Warburg Pincus a $40 million breakup fee were it to accept an alternate offer. Bausch & Lomb is being advised by Morgan Stanley.

Wellco Enterprises Inc. (AMEX: WLC) shareholders approved a $14 per share buyout by Golden Gate Capital and Integrity Brands. Wellco is a Waynesville, N.C.-based maker of military boots and other rugged footwear.

Winchester Electronics Corp., a Wallingford, Conn.–based designer and manufacturer of electronic connectors and interconnect solutions, has acquired the assets of both Advanced Interconnect Inc. and Kings Electronics Company. No financial terms were disclosed, except that the combined business expects annual sales in excess of $100 million. Winchester Electronics is a portfolio company of Audax Group.