Beacon Roofing Supply has agreed to an $11 billion buyout offer from billionaire Brad Jacobs’ firm QXO, weeks after it rejected an earlier proposal and strived to avoid a hostile takeover attempt.

The deal caps a months-long takeover saga and gives QXO, a new entrant in the building products distribution industry, a head start, as it seeks to establish a strong presence in the sector.

QXO has agreed to pay $124.35 per share in cash for Beacon, the companies said on Thursday.

The new offer is only 10 cents higher than the previous bid of $124.25 per share, which it rejected in January, saying it "significantly undervalued" the company.

Beacon had also adopted a poison pill defense to prevent a hostile takeover.

QXO, which counts U.S. President Donald Trump’s son-in-law Jared Kushner as a board member, said in connection with the transaction, it has withdrawn its nomination of 10 independent director nominees for Beacon.


Shares of QXO were up 12% in premarket trading, while Beacon’s shares rose 2%.

"Acquiring Beacon is a key milestone in our plan to create substantial shareholder value and establish QXO as a leader in the $800 billion building products distribution industry," said Brad Jacobs, chairman and chief executive officer of QXO.

QXO will be funding the deal with $5 billion in cash and financing commitments, covering the rest of the full purchase price, it said.

Earlier this week, QXO raised $830 million in private placement from institutional investors, contingent upon the deal with Beacon closing. It said it would sell about 67.5 million shares of its common stock at $12.30 per share.

QXO has already obtained anti-trust clearance in the United States and Canada to acquire Beacon.

The transaction is expected to close by the end of April.