Ralcorp Holdings Inc. is set to receive approximately $900 million from Post in connection with the tax-free spin-off of its Post cereal business. The announcement was made Dec. 23 as part of an amendment to the company’s Form 10 registration statement filed with the Securities and Exchange Commission.

Ralcorp will retain up to 20 percent of the outstanding shares of Post once it is spun off to shareholders. The board plans to use the proceeds of the transaction to reduce debt, aggressively pursue private brand acquisitions and pursue additional share repurchases, according to a press release.

The separation, first announced in July, should be completed in late January 2012, according to Ralcorp.