June 18 (Reuters) - Billionaire Brad Jacobs'

new building-products distributor QXO made an offer on

Thursday to acquire rival GMS for about $5 billion in

cash and said it would proceed with a hostile takeover if the

company rejects the offer.

This is Jacobs's second hostile takeover threat in the

building sector this year. He plans to turn QXO into a $50

billion revenue company in the next decade.

The move comes three months after QXO clinched an $11

billion deal to buy Beacon Roofing Supply, ending a prolonged

takeover battle and significantly expanding its footprint in the

U.S. and Canadian building products distribution markets.

While QXO's proposal is still technically in the friendly

phase, it states that if GMS's board does not engage

constructively by June 24, QXO is prepared to bypass management.

"If you choose not to engage... we are prepared to take our

offer directly to GMS's shareholders," Jacobs said in a letter

sent to GMS Chief Executive Officer John Turner.

QXO said it offered $95.20 per share for all outstanding

shares of GMS, a premium of about 17% over the company's

Wednesday closing price.

GMS did not immediately respond to a Reuters request for

comment on the offer.

Earlier in the day, shares of Georgia-based GMS hit their

highest level in almost five months after the company reported

upbeat quarterly results and announced an additional $25 million

in annualized cost reductions.

GMS operates a network of more than 300 distribution

centers and its product lineup includes wallboard, ceilings and

steel framing.