Latham & Watkins has secured a boost for its fledgling Spanish operation after landing a lead role on the €1.48bn (£998m) buyout of Applus Servicios Tecnologicos by the Carlyle Group – the largest private equity deal in Spain for two years.

Latham advised longstanding client Carlyle, fielding a Madrid-based team headed by corporate partner Jose Luis Blanco.

The instruction represents a coup for Latham following its Spanish launch at the beginning of 2007, when the Los Angeles giant hired Blanco from local heavyweight Cuatrecasas. Latham has since strengthened the offering with the capture of rated Lovells administrative law partner Antonio Morale earlier this summer, with further lateral additions expected in the coming months.

City giant Linklaters advised banks including Barclays Capital and Societe Generale on financing of the Applus deal, with Madrid banking partner Pedro de Rojas leading a team that also included lawyers in London and Luxembourg.

The deal comes after Linklaters' Madrid arm advised the Royal Bank of Scotland and ING Bank on the financing of the acquisition by Candover of Parques Reunidos.