CHICAGO, Illinois (From news reports) -- Finnish paperboard company Powerflute Oyj recommended cash offer from Chicago-based private equity firm Madison Dearborn Partners LLC for 268 million pounds ($354 million), it said on Thursday.

Powerflute, founded by Dermot Smurfit from the family behind Ireland's packaging group Smurfit Kappa, last year had sales of 357 million euros ($401 million) and core earnings before interest, taxes, depreciation and amortization of 55 million euros.

Smurfit and other biggest owners are backing the offer.