* To be bought by pvt equity firm Madison Dearborn Partners
* BWAY shareholders to get $20/share
* Offer at 15 pct premium to stock's Friday close
* Shares up 18 pct
March 29 Packaging company BWAY Holding Co BWY.N said it agreed to be bought by private-equity firm Madison Dearborn Partners LLC for about $448 million in cash.
BWAY shareholders will get $20 for each share, a premium of 15 percent to the stock's close Friday on the New York Stock Exchange.
The deal value is based on BWAY's outstanding shares as of Jan. 21. Including assumption of debt, the deal is valued at $915 million.
Bank of America Merrill Lynch and affiliates of Deutsche Bank Securities Inc will provide debt financing for the deal, BWAY said in a statement.
Upon completion of the merger, BWAY will become a private company wholly-owned by affiliates of Madison Dearborn Partners, BWAY said.
The transaction is expected to close in the second or third quarter of 2010, the company said a in a statement.
Under the terms of the deal, BWAY may solicit alternative proposals from third parties for 30 days and it intends to consider any such proposals.
Shares of BWAY, which rose 18 percent to $20.46 in early trade Monday, later pared some gains and were trading up $2.70 at $20.05. (Reporting by Arundhati Ramanathan in Bangalore; Editing by Unnikrishnan Nair)