Friday morning, Israeli drug maker Teva Pharmaceuticals (NASDAQ:TEVA) announced the acquisition of generic drug maker Sicor (NASDAQ:SCRI). The deal, which included $16.50 in cash plus 0.1906 Teva shares, values Sicor at $3.4 billion, or $27.50 per share.

With the explosion of generic drugs, Sicor's generic injectable drug business will complement Teva's generic oral dose franchise nicely. The acquisition strengthens Teva's position, most importantly in North America, where the company generated 63% of its sales in the third quarter.

Of course, Teva was doing pretty OK itself.

Monday morning, the company reported that third-quarter sales grew 29% to $813 million, as global sales of multiple sclerosis (MS) treatment Copaxone increased 25% to $180 million. Meanwhile, EPS gained 47% to $0.53.

Back in March, Jeff Fischer penned a three-part series on the potential of generic drug companies. Following a discussion of Mylan Labs (NYSE:MYL), he highlighted three companies to consider, including Sicor. At the time, he felt that Sicor was attractive at about 20 times free cash flow, or $17.30 per share.

Those of you who have subscribed to TMF Select (now Motley Fool Hidden Gems) or the Foolish 8 in the past are also familiar with Sicor. It first pulsed the Foolish 8 radar on August 20, 2001 at $23.88.

Sicor shareholders have a nice partner in Teva, and a nice stock price at $27.09 in Monday midday trading.

Jeff Hwang can be reached at JHwang@fool.com.