The packaging industry has seen a wave of consolidation in recent years, with private equity groups being drawn to the stable cash flows of the firms that tend to grow in line with gross domestic product (GDP) and have so far seen limited impact from the debate about plastic pollution in the world's oceans.

Buyout group Lindsay Goldberg is working with Goldman Sachs on the divestiture of Vienna-based Schur Flexibles - a maker of packaging for meat, cheese, confectionary and pharmaceuticals - which it hopes to sell for 800-900 million euros (£719.07 million - £805.81 million), they said.

Separately, family-owned German All4Labels Group, one of the world's top three makers of adhesive labels, has also started the search for a new investor with the help of Goldman Sachs in a potential deal that could value the firm at 700-800 million euros, they added.

Lindsay Goldberg, Goldman Sachs and the private equity bidders declined to comment, while All4Labels and its owners were not available for comment.

Schur has annual sales of 520 million euros and 1,750 staff. It was bought by Lindsay Goldberg in 2016, which has since strengthened the group with a series of acquisitions.

In the auction, which is kicking off shortly, some private equity firms hope the price to drop to 600-700 million euros.

While the company is being marketed with 2019 expected earnings before interest, tax, depreciation and amortisation (EBITDA) of 90 million euros, some of the buyers expect reported core earnings to come in lower.

Investor doubts about the company's earnings in December weighed on the refinancing of Schur Flexibles. At the time, it had to hike the pricing on a 275 million euro refinancing.

All4Labels was founded in 2016 through the merger of packaging firms Baumgarten, Rako und X-label. The group expects to post EBITDA of about 80 million euros this year on sales of more than 500 million. It has more than 3,000 staff.

The auction, in which buyout groups such as PAI, Triton, Advent and Platinum have participated, is already in the second round, with only bidders offering more than 700 million having been allowed to progress from the first round.

(Reporting by Arno Schuetze; Editing by Michelle Martin)