With this sale to TriRx, Elanco now expects its gross margin efforts to reach 60% by 2023. These changes also reduce annual capital expenditures by $25 million to $30 million, which more than offsets an operating income reduction of approximately $5 million from third-party contract manufacturing activities associated with the sites. Furthermore, Elanco anticipates an improvement in working capital as approximately $75 million to $85 million of inventory on the company's balance sheet will exit as part of this transaction. Latin America Manufacturing Consolidation Additionally, Elanco announced the consolidation of its manufacturing operations in Latin America, ceasing operations at the legacy Bayer Animal Health manufacturing site in Belford Roxo, Brazil, transferring these operations to the company's site in Santa Clara, Mexico, and a contract manufacturer in Brazil. The Belford Roxo site, which currently supplies six smaller, regional products, is expected to be decommissioned in early 2022.