As a result, management accelerated the timeline of its margin target goal by a year and announced that because of this acquisition they would reach their goal of 31% EBITDA margins by 2022. Post-acquisition, Elanco and Zoetis had a closer scale and more similar geographic/portfolio mixes, but, Elanco's (including Bayer) margins were well below Zoetis, which had EBITDA margins of 40% by 2019. Granted, that Zoetis had some valuable products with high pricing power leading to higher gross profit margins than Elanco, but that is why Elanco was not targeting 40% but only 31%.