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UPDATE 1-Principal Financial to buy majority stake in Brazilian co
March 1, 2012 / 12:36 PM / 5 years ago

UPDATE 1-Principal Financial to buy majority stake in Brazilian co

* Says deal to be neutral to 2012 EPS; to add to EPS thereafter

* Says deal part of plan to deploy $800 mln to $900 mln in capital

March 1 (Reuters) - Insurer and asset manager Principal Financial Group said it will buy a 60 percent indirect ownership in a Brazilian mutual fund and asset management company to expand its base in the country.

Sao Paulo-based Claritas Investments Ltd, has more than $1.8 billion in assets under management, Principal said.

Financial terms of the deal were not disclosed.

The deal is the second such partnership for Principal in Brazil after the company launched a joint venture with Banco do Brasil in 1999.

The purchase is expected to be neutral to Principal's earnings per share for the current year and thereafter add to its earnings, the company said in a statement.

"We will continue to deploy capital for acquisitions that are aligned with our focused strategies and complementary to our existing businesses," said Larry Zimpleman, chief executive of Principal.

Principal said the deal is part of its plan to deploy $800 to $900 million of capital in 2012.

Principal shares closed at $27.66 on Wednesday on the New York Stock Exchange. (Reporting by Tanya Agrawal in Bangalore; Editing by Gopakumar Warrier)

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