Principal Buys Control of Brazil’s Claritas

US investment manager Principal Financial Group (PFG) has moved to acquire a controlling 60% stake in Brazilian mutual fund and asset manager Claritas Administracao de Recursos. The deal is expected to have a neutral effect on PFG’s earnings per share this year and to add to earnings per share and return on equity after 2012, the firm says. An official at PFG declines to give a specific amount for the deal but says it was between $60m and $85m. PGR expects this deal to result in more than a 15% IRR, a metric that PGR typically uses to judge investments, the spokesman says. Claritas officials could not be reached for comment. PFG was advised by Lazard Freres. Claritas currently holds more than BRL3.1bn ($1.8bn) in funds under management. PFG has pointed out that this acquisition is part of its overall investment of $800m to $900m this year, on top of $154m it will use to pay dividends and to buy back its own stock. In its previous acquisition in the region last April, PFG paid $198m for HSBC Afore, a unit of HSBC Mexico.