Herrin-Gear was founded in 1968 by Herrin's father, Carl Herrin, and George Gear. The Herrins later bought out the Gear family.
"This transaction reflects a major milestone for our family and for our business," Jack Herrin, who maintains an undisclosed equity stake, said in a statement. "Partnering with Open Road Capital will allow Herrin-Gear to pursue new opportunities while maintaining the legacy and culture built over the past 50 years."
Herrin-Gear General Manager Reed Howell, who has been with the company 26 years, was named president of Herrin-Gear and acquired an undisclosed stake. He is dealer principal for the Lexus and Chevrolet stores. Chelline, who has managed and owned dealerships, is dealer principal of the BMW and Infiniti dealerships.
Herrin-Gear also owns a Toyota dealership that is not part of the Open Road-Bain investment.
Open Road and Bain said that InterPrivate, a New York firm that invests on behalf of family offices, may join on future deals to offer additional capital.
Open Road was established in 2014 and made its first investment in auto retail in late 2017, buying a majority stake in Toyota Walnut Creek in California.
Open Road and Bain have been talking for the past few years and looked at other deals together, according to Open Road. It's the first private dealership group investment for Bain Capital Credit, Batchelor said.
"We look forward to a productive partnership with Open Road Capital as we seek to provide creative solutions to address the various challenges and opportunities facing auto dealership owners throughout the country," Matt Evans, a managing director at Bain Capital Credit, said in a statement.